India-based crypto trading platform WazirX has stated that the country’s financial crime watchdog — the Directorate of Enforcement (ED), has unfrozen its bank accounts allowing the company to continue banking operations. In August, they searched one of the directors at Zanmai Labs which runs WazirX in India, and issued a freeze order to their bank balances. 64.67 crores. This was related to ED’s investigation of 16 Fintech companies and Instant Loan apps.
The tweet from the crypto exchange said that the “ED has unfrozen WazirX’s bank accounts.” In cooperation with investigators, WazirX provided all necessary details & documents of the alleged accused companies that used the WazirX platform.”
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WazirX’s bank accounts have been unfrozen by the ED. In cooperation with investigators, WazirX provided all necessary details & documents of the alleged accused companies that used the WazirX platform.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 12, 2022
The exchange was clarified by a blog post According to the Enforcement Directorate (ED), “The Enforcement Directorate has been conducting investigations into 16 fintech firms and instant loan apps. Some of them used the WazirX platform. WazirX cooperated with investigators and provided all details, information, documents, and other documentation of the accused companies that used the WazirX platform.
“The company clarified that it does not have any association with the alleged fintech or instant loan app companies being investigated. It is also conducting KYC/AML checks despite not being legally required to. WazirX works in the same way as any other intermediary that may have been misused.
Binance effectively disowned WazirX when they learned of the ED probe. Changpeng Zhao, Binance CEO said that the acquisition transaction was never finalized. “On 21st November 2019, Binance published a blog post that it had “acquired” WazirX – this transaction was never completed,” clarified Zhao. “Binance has never – at any point – owned any shares of Zanmai Labs, the entity operating WazirX.”
WazirX co-founder Nischal Shetty rebutted Zhao’s tweet that “WazirX has been acquired by Binance.” Zanmai Labs is an Indian entity owned by me & my co-founders. Binance granted Zanmai Labs permission to operate INR-Crypto pair in WazirX. Binance operates crypto to crypto pairs, processes crypto withdrawal.”