According to the cryptocurrency exchange Wazirx, the Indian government’s Enforcement Directorate (ED) has lifted its prohibition on the company’s access to its bank accounts. In the course of their inquiry into sixteen different financial technology companies and rapid lending apps, the federal authorities froze the accounts in question.
According to Wazirx, the company’s bank accounts have been defrosted.
The Indian cryptocurrency exchange Wazirx announced on Monday that the bank accounts of the company have been unfrozen by the Enforcement Directorate (ED), which is the government agency in India responsible for law enforcement and economic intelligence.
According to the information provided by the company, the ED has been looking into sixteen different fintech companies and rapid loan apps. While it is important to note that Wazirx has “no association with any of the alleged accused fintech and instant loan app entities which appear to be the subject of ED independent inquiry,” the cryptocurrency exchange did acknowledge that some of these businesses “have started happening to use the Wazirx platform.” Despite the fact that Wazirx has “no relationship with any of the alleged arrested on suspicion fintech and immediate loan app entities,” it is important to note that Wazirx has “
The Indian cryptocurrency exchange emphasized that it “has been cooperating with the investigators by providing them with all of the necessary details, information, and documents of the alleged accused companies” that used its platform. This was done by providing investigators with “all of the necessary details, information, and documents of the alleged accused companies.”
The ED has unfrozen the bank accounts of Wazirx, according to the details provided by the cryptocurrency exchange, which elaborated as follows: “Due to the active cooperation extended by Wazirx and active anti-money laundering (AML) checks that led to the blocking of suspicious accounts, ED has unfrozen the bank accounts of Wazirx.”
Wazirx is now in a position to carry on with business as normal regarding its banking operations.
At the beginning of August, the ED made the announcement that it had placed a freeze on the bank assets of Wazirx. The agency added that the action was taken as part of its investigation into money laundering into non-bank financial companies (NBFC) and their fintech partners for engaging in “predatory lending practices” in contravention of the norms established by the Reserve Bank of India (RBI).
Wazirx provided additional clarification Monday, stating that a comprehensive internal inquiry has uncovered the following:
The majority of the users whose information was requested by ED had already been flagged as suspicious by Wazirx’s internal security team and had their accounts blocked in 2020-2021.
In the wake of the Wazirx scandal, the ED froze the crypto and bank assets of Vauld, a cryptocurrency platform supported by Peter Thiel, totaling $46 million. The government conducted a search of the cryptocurrency exchange Coinswitch Kuber in August. However, the chief executive officer of the exchange stated that it was unrelated to any investigations into money laundering.