India-based crypto trading platform WazirX has said that the country’s financial crime watchdog – the Enforcement Directorate (ED) has closed its bank accounts allowing the company to continue banking operations. Back in August, he searched one of the directors of Zanmai Labs, which operates WazirX in India, and found his bank balance to be Rs. 64.67 crores. This was in connection with the ED’s probe into 16 fintech companies and instant loan apps.
The crypto exchange announced in a tweet, “ED has closed the bank accounts of WazirX. In collaboration with investigators, WazirX provided all necessary details and documents of alleged accused companies using the WazirX platform.”
Update on ED’s investigation:
ED has frozen the bank accounts of WazirX. In collaboration with investigators, WazirX provided all the necessary details and documents of the alleged accused companies using the WazirX platform.
— WazirX: India’s Bitcoin Exchange (@WazirXIndia) 12 September 2022
The exchange clarified in a blog post Explaining, “The Enforcement Directorate (ED) is probing 16 fintech companies and instant loan apps. Some of them happened to be using the WazirX platform. WazirX is cooperating with the investigators by providing all the details, information, and Documents of companies alleged to be using the WazirX platform.”
The company further clarified that it has no affiliation with any of the alleged accused fintech and instant loan app entities, which appear to be the subject of an ED investigation, and have no legal obligation to do so, despite the KYC/AML investigation. WazirX is like any other intermediary whose platform can be misused.”
Binance almost rejected WazirX due to news of the ED investigation. Binance CEO Changpeng Zhao tweeted that the transaction to complete the acquisition was never completed. Zhao clarified, “On November 21, 2019, Binance published a blog post that it had “acquired” WazirX – a transaction that was never completed. No shares are owned by the entity operating WazirX.”
WazirX co-founder Nischal Shetty denied Zhao’s tweet “WazirX was acquired by Binance. Zanmai Labs is an Indian entity owned by me and my co-founders. Zanmai Labs has INR-crypto pairs in WazirX Licensed from Binance to operate. .Binance operates crypto to crypto pairs, processes crypto withdrawals.”