India’s government looked into claims that the Indian cryptocurrency exchange was used to launder money. This led to the freezing of bank accounts with nearly $8.1 million.
The investigation looked into 16 fintech companies and fast lending apps, some of which had tried to get services from the exchange.
On the other hand, the exchange has made it clear that illegal things are not allowed on its platform. Also, it said that most of the users being looked at in the ED investigation had been marked as suspicious by WazirX and banned in 2020 or 2021. These facts were in the report. However, like other cryptocurrencies you may also be interested in Meme Coin.
The company hasn’t been able to use the money in its bank accounts since August 5, when the ED first said it was looking into WazirX. There was more than $8.1 million in money that couldn’t be used.
The investigation into cryptocurrency exchanges in the country didn’t end with WazirX this time, unlike the last time. On August 12, the ED took $46.4 million from the bank accounts of Yellow Tune and the cryptocurrency exchange Flipvolt. People also said that Chinese groups used the company as a front and to launder money.
When the Indian government passed strict new crypto tax laws at the beginning of this year, this pile of investigations started to grow.
The ED is looking into claims that some non-banking finance companies and their fintech partners have been laundering money. Part of that is this look into it. All of these claims are being looked into by the ED because these companies have also been accused of using loan apps to give money to people who can’t pay it back.
Telemarketers misuse their customers’ personal information, and people pay huge interest rates to the companies that hire them. The RBI wouldn’t give NBFC licenses to fintech companies backed by China that wanted to lend money. Instead, they signed memorandums of understanding (MOUs) with NBFCs that were no longer in business so they could use their license.
After the criminal investigation began, a few of these fintech app companies went out of business or changed how they made money. During its investigation of the money trail, the ED found that large sums of money had been taken by fintech companies to buy cryptocurrency assets and then laundered overseas.
You can’t find these businesses or their online property anymore. People who trade in cryptocurrencies have been asked to appear in court. A press release from the ED says that the possible money was sent to the WazirX exchange. Then, the bought crypto assets were sent to wallets in other countries that no one knew about.
What most people do
Fintech is thought to have been used by the app-based lending businesses that are being looked into to get paid. After all of the money was made, the rest was sent to the person through cryptocurrency so they could leave the country. The big problem is that once money is put in an offshore wallet, it can’t be traced back to where it came from.
On August 5, the Directorate of Enforcement went to the house of one of M/s Zanmai Lab Pvt Ltd’s directors (ED). They also stopped Rs 64.67 crore from being sent to the company from the bank accounts of the company. WazirX is owned by M/s Zanmai Lab Pvt Ltd.Soon after that, Binance stopped letting people move money from WazirX into the Binance app.
What made the fight so bad
In its statement, the ED said that the company that owns the WazirX Crypto Exchange, Zanmai Labs Pvt Ltd, has made a web of agreements with other companies, like Crowdfire Inc. in the US, Binance (Cayman Islands), and Zettai Pte Ltd in Singapore, to hide who owns the cryptocurrency exchange.