The worst may be over for top Indian cryptocurrency exchange WazirX, which was recently embroiled in a money laundering probe by the Enforcement Directorate (ED). According to a Monday announcement, the ED has lifted the freeze it placed on the exchange’s bank accounts while the investigations will continue.
This follows after the investigator began scrutinizing about 16 fintech companies such as Vauld, and some instant loan applications. At the time, the ED claimed that some of those firms may have been using WazirX to launder money illegally.
Reports of the investigations first broke when the premises of the WazirX Director were searched by the ED. That search was soon followed by the decision to freeze the exchange’s accounts. In total, the ED froze about Rs 65 crores (approx $8.13 million) worth of WazirX bank assets.
WazirX removes self from criminal allegations
Per WazirX, although investigations are still ongoing, it has been playing its part by fully cooperating with the investigators. WazirX claims it supplied the ED with all information and documents required of it, to absolve its platform of any complicity in the criminal allegations. Part of the announcement reads:
“WazirX has a no-tolerance policy towards any illegal activities using its platform and mandates the users to use it for legal and bonafide purposes only.”
The crypto exchange further added that users of its platform are required to sign an undertaking which means they agree to operate within the dictates of existing laws.
Interestingly, WazirX’s cooperation may have helped unfreeze its accounts but there are more to the allegations. According to an earlier statement by Pankaj Chaudhary – an Indian lawmaker, there may also have been a violation of the Indian Foreign Exchange Management Act (FEMA) at some point.
Whatever might be the case, it appears WazirX is working tirelessly to ensure that normalcy is returned to its platform.