ED allows WazirX to access its bank accounts
ED has launched an investigation into several crypto firms over allegations of money laundering into foreign crypto wallets. Last month, the agency reportedly conducted raids on five locations linked to another crypto firm CoinSwitch Kuber
PremiumNEW DELHI: The Enforcement Directorate (ED) has lifted the ban on WazirX accessing its bank accounts, allowing the crypto exchange to resume its banking operations, WazirX said in an online post on Monday.
“Due to the active cooperation extended by Wazir X and active anti-money laundering checks that led to the blocking of suspicious accounts, ED has unfrozen the bank accounts. WazirX is now in a position to continue its banking operations as usual," the post said.
WazirX’s accounts worth ₹64.67 crore were frozen last month after the ED launched a money laundering investigation into the crypto exchange’s alleged role in assisting 16 Indian fintech firms and loan apps by transferring money for them to unknown foreign wallets, according to a Mint report.
The crypto exchange has maintained that it cooperated with ED and provided them with all necessary details, information, and documents related to the 16 firms that were using its platform and are being investigated by ED. It also claimed that most of the users whose information was sought by ED were deemed suspicious by the platform and blocked in the last two years.
“WazirX is like any other intermediary whose platform may have been misused," the post said.
WazirX received 1,023 requests from law enforcement agencies between October 2021 and March 2022, up from 377 requests received in the previous six months. Indian law enforcement agencies accounted for 952 of these requests, according to the WazirX semi-annual transparency report published in April. The report showed that 95% of crypto-associated frauds occurred outside the Blockchain ecosystem.
ED has launched an investigation into several crypto firms over allegations of money laundering into foreign crypto wallets. Last month, the agency reportedly conducted raids on five locations linked to another crypto firm CoinSwitch Kuber, which said in a statement that it is cooperating with the investigation.
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