India’s Law Enforcement (ED) Directorate has unblocked the bank accounts of cryptocurrency exchange Wazirx, the company said. The accounts were frozen as part of the federal agency’s investigation into 16 fintech companies and instant loan apps.
Wazirx says his bank accounts are now unblocked
Indian cryptocurrency exchange Wazirx said on Monday that the Enforcement Directorate (ED), the Indian government’s law enforcement and economic intelligence agency, has unblocked its bank accounts.
The company explained that the ED investigated 16 fintech companies and instant loan apps. While emphasizing that Wazirx has “no association with any of the allegedly accused fintech and instant lending app entities that appear to be under ED investigation,” the crypto exchange acknowledged that some of these companies “have used the Wazirx platform”.
The Indian crypto exchange stressed that it “cooperated with investigators by providing them with all necessary details, information and documents from the allegedly accused companies” that used its platform.
“Due to extensive active cooperation by Wazirx and active Anti-Money Laundering (AML) checks that led to the blocking of suspicious accounts, ED has unblocked Wazirx’s bank accounts,” the exchange detailed. crypto, specifying:
Wazirx is now able to continue banking as usual.
The ED announced that it had frozen Wazirx’s bank assets in early August. The agency explained that the action was part of its investigation into money laundering of non-bank financial companies (NBFCs) and their fintech partners for “predatory lending practices” in breach of Reserve Bank of India guidelines. (RBI).
Wazirx further clarified on Monday that a thorough internal investigation revealed:
Most of the users whose information was sought by ED were already identified as suspects by Wazirx internally and were blocked in 2020-2021.
After Wazirx, the ED froze crypto and banking assets worth $46 million from Vauld, a crypto platform backed by Peter Thiel. In August, the agency searched the crypto exchange Coinswitch Kuber. However, the exchange’s CEO said it was not linked to any money laundering investigations.
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