ED probe freezes bank accounts of cryptocurrency exchange WazirX More Then 65 Crore Freeze ?
WazirX Crypto-Currency Exchange: Enforcement Directorate has searched the locations of a director of Zanmai Lab Pvt Ltd. The director of the company, where the ED (Enforcement Directorate) has searched, is the owner of the famous cryptocurrency exchange named WazirX.
The ED has also given orders to freeze the bank accounts of the director, in which Rs 64.67 crore is deposited. It is alleged that the director of WazirX cryptocurrency exchange has helped accused instant loan app companies in laundering fraudulent money through purchase and transfer of virtual crypto assets.
Raids took place in Hyderabad on August 3
The probe agency said that they conducted raids on August 3 in Hyderabad against the director of Janmai Lab Pvt Ltd and the owner of WazirX. The ED said that the director had not helped in the investigation during interrogation. Let us inform that this investigation of ED against crypto exchange is related to the ongoing investigation against all Chinese loan apps (mobile applications) working in India. The agency had last year accused WazirX of alleged violation of the Foreign Exchange Management Act (FEMA).
Sameer Mhatre did not help ED despite having access to the database
The ED said that WazirX director Sameer Mhatre has full remote access to WazirX’s database, yet he is not giving details of transactions related to crypto assets that have been purchased by the instant loan app with fraudulent proceeds.
The ED said that the crypto-exchange has actively helped around 16 accused fintech companies to legalize erroneously earned money through the crypto route by encouraging ambiguity and weakening anti-money laundering norms. Therefore, movable assets worth Rs 64.67 crore lying with WazirX under the Prevention of Money Laundering Act (PMLA) have been attached.
Let us inform that the Indian investigative agency ED is probing money laundering against all NBFC companies operating in the country and their fintech partners for violating Reserve Bank of India guidelines and misusing personal data.
Fintech companies backed by Chinese funds did not get NBFC license
Various fintech companies backed by Chinese funds could not get NBFC licenses from RBI to conduct lending business. Therefore, he paved the way for MoUs with the defunct NBFC companies so that business could be done through their licenses. After the criminal investigation started, many of these fintech apps tied up their bags and hid the money that was wrongly earned.
Huge amount spent to buy crypto assets
Investigating the fund trail, the ED found that fintech companies spent huge money buying crypto assets and then transferred them overseas. These companies and their virtual assets cannot be traced at the moment. The crypto-exchange has been summoned.
The investigation found that the maximum amount was remitted to the WazirX exchange and the crypto-assets thus purchased were transferred to unknown foreign wallets.
