Big win for the crypto exchange
The frozen account of WazirX has seen release since the Enforcement Directorate of India has unfrozen the account of the crypto exchange.
Due to “active cooperation” with the ED the exchange saw itself released from any freezing. The active cooperation was with the ED via active anti-money laundering checks that ended up blocking “suspicious accounts”
The exchange is notably one of India’s largest with $2.9 million traded within 24 hours. The amount frozen was $8.14 million and that amount was frozen for a month. The financial watchdogs accused the company of aiding in money laundering via virtual crypto assets. It was found that 16 fintech companies made use of WazirX to direct crypto assets to foreign wallets that were “unknown”
During an investigation it was found that most of the suspected companies ahead had already been dealt with and blocked back in late 2020 early 2021.
The regulators stated that this news came amid investigations into Chinese-owned illegal online betting Applications that started back in June. WazirX was issued a show-cause notice as part of the investigation. The ED stated that clients using WazirX were able to send “valuable” assets anywhere around the world to any person without the proper documentation. This sparked the investigation and caused the ED to freeze the assets of the company.