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HomeLaw & PoliticsED freezes WazirX's Rs 64.67 crore bank assets amid money laundering allegations

ED freezes WazirX’s Rs 64.67 crore bank assets amid money laundering allegations

On August 5, ED freeze crypto exchange WazirX, bank assets totaling Rs 64.67 crore as part of a money laundering investigation.

The minister of state for finance, stated in Rajya Sabha on August 2 that ED is investigating reports that a total of Rs 2,790 crore worth of money was laundered through the crypto exchange WazirX. On August 5, the Directorate of Enforcement (ED) raided one of the directors of M/s Zanmai Lab Pvt Ltd, which controls the well-known crypto exchange WazirX, and issued a freezing order to freeze their bank accounts totaling Rs 64.67 crore amid the money laundering allegations.

ED statement alleged that Sameer Mhatre, director, WazirX, has complete remote access to the database of WazirX, but despite that, he is not providing the details of the transactions relating to the crypto assets purchased from the proceeds of the crime of instant loan app fraud.

Several Indian NBFC businesses and their fintech partners are allegedly the targets of an ED money laundering probe for indulging in predatory lending practises in violation of RBI standards. According to ED, telemarketers take advantage of consumers’ sensitive information and use vulgar language to charge them high interest rates.

Numerous fintech businesses supported by Chinese investors failed to get an NBFC licence from the RBI to conduct lending activities. As a result, they developed the MoU approach with failed NBFCs to profit from their licence.

ED discovered that fintech businesses had diverted a sizable sum of money to buy crypto assets and subsequently launder them abroad. These businesses and the virtual assets are currently untraceable. There were summonses sent to the crypto-exchanges. 

The WazirX exchange was the destination of the majority of the funds, and the purchased crypto assets were then moved to anonymous foreign wallets. As a consequence, the ED froze equivalent assets owned by WazirX and valued at Rs 64.67 crore in compliance with the Prevention of Money Laundering Act.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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