The Enforcement Directorate (ED) on Friday mentioned it has frozen bank deposits of Rs 64.67 crore as half of a cash laundering probe towards crypto foreign money exchange WazirX.
Photograph: Dado Ruvic/Reuters
The federal company mentioned it carried out raids towards a director of Zanmai Lab Pvt Ltd, which owns WazirX, on August 3 in Hyderabad and alleged he was “non-cooperative”.
The company’s probe towards the crypto exchange is linked to its ongoing investigation towards a quantity of Chinese mortgage apps (cellular functions) working in India.
The company had charged WazirX final yr for alleged contravention of the Foreign Exchange Management Act (FEMA).
“It was discovered that Sameer Mhatre, Director WazirX, has full distant entry to the database of WazirX, however regardless of that he’s not offering the small print of the transactions referring to the crypto belongings, bought from the proceeds of crime of instantaneous mortgage app fraud.”
“The lax KYC norms, unfastened regulatory management of transactions between WazirX and Binance, non-recording of transactions on block chains to save lots of prices and non-recording of the KYC of the other wallets has ensured that WazirX isn’t capable of give any account for the lacking crypto belongings,” the ED alleged in a press release.
It mentioned the corporate made no efforts to hint these crypto belongings.
“By encouraging obscurity and having lax AML (anti-money laundering) norms, it has actively assisted round 16 accused fintech corporations in laundering the proceeds of crime utilizing the crypto route,” it mentioned.
Therefore, the ED mentioned, equal movable belongings to the extent of Rs 64.67 crore mendacity with WazirX have been frozen beneath the Prevention of Money Laundering Act (PMLA).