• WazirX accounts Unfrozen by India’s Enforcement Directorate.
  • Finance Minister brought the illegal loan apps with connections to China into the spotlight.

WazirX, a cryptocurrency exchange, announced on Monday that, more than a month after the Enforcement Directorate (ED) of India had frozen its bank accounts had been “Unfreeze.” The ED froze the WazirX bank account last month as part of an ongoing probe into alleged fraud on instant loan applications, which provide short-term loans.

Several of the 16 fintech companies that are the target of an investigation have used the WazirX platform. Following that, the crypto exchange WazirX stated that it has been working with the Enforcement Directorate authority by providing them with all the required details, data, and documentation of the suspected charged companies who used the WazirX platform.

And the Indian cryptocurrency exchange WazirX stated that 

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. On WazirX, the users undertake to operate as per all the applicable laws.

WazirX Probe With Enforcement Directorate

Indian regulatory body in charge of monitoring WazirX economic crimes, for allegedly enabling the purchase and transfer of virtual cryptocurrency assets in support of scam Instant Loan App firms with their headquarters in China.

Following that, on August 5, ED initiated a raid on Sameer Mhatre’s WazirX properties for allegedly supporting 16 fintech accused companies in using cryptocurrency to launder the proceeds of crime. Although, Investigators froze $8.1 million in exchange-held money.

WazirX was charged with approving transactions worth more than $350 million in cryptocurrency assets to unidentified wallets. Finance Minister Nirmala Sitharaman confirmed on August 3 that under FEMA, Show Cause Notice (SCN) also was sent to WazirX. 

WazirX has also encountered a new problem, which escalated the situation into a Twitter argument between a co-founder of WazirX Nischal Shetty, and the CEO of Binance Changpeng Zhao, over who controls WazirX.

Furthermore, Finance Minister Nirmala Sitharaman presided over a meeting on September 8. In the meeting finance minister brought the “illegal loan apps” with connections to China into the spotlight.

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