According to an update from the exchange, India’s Enforcement Directorate (ED) has unfrozen the accounts of crypto exchange WazirX.
According to today’s announcement, the exchange’s bank accounts were unfrozen after “active cooperation” with the ED via active anti-money laundering (AML) checks that blocked “suspicious accounts.” With a $2.9 million 24-hour trading volume, the exchange has frozen $8.14 million in assets for more than a month.
WazirX reports that their bank accounts have been unfrozen
According to the ED’s release, the exchange was accused of facilitating money laundering “via the purchase and transfer of virtual crypto assets,” and 16 fintech companies used WazirX to direct crypto assets to “unknown foreign wallets.”
During its investigation of the exchange, the financial regulator discovered that most accounts of the suspected 16 companies allegedly laundering money through WazirX had already been blocked between 2020 and 2021.
The announcement comes amid an “ongoing money laundering investigation into Chinese-owned illegal online betting Applications,” according to the regulator, which was announced in June. As part of its investigation, the ED served WazirX with a show-cause notice at the time.
According to the ED, “WazirX clients could transfer ‘valuable’ cryptocurrencies to any person, regardless of location or nationality, without proper documentation,” prompting the investigation and asset freeze.
The authorities are investigating WazirX and CoinSwitch
The Indian regulator is actively investigating money laundering and other fraudulent cryptocurrency activity. For example, CoinSwitch, another Indian crypto exchange backed by Coinbase and a16z, was accused of violating forex laws in August, and five of its locations were investigated.
The CEO of the exchange stated that the investigation was “not about money laundering” but rather about daily Know Your Customer (KYC) operations and procedures for onboarding new users.
There had been no updates as of the time of publication.