On Monday (September 12th), the crypto exchange announced that its bank accounts had been unfrozen after a month. WazirX can now resume its banking operations as usual.
In August, the ED raided the premises of M/s Zanmai Lab Pvt Ltd, WazirX's parent company, and its directors, freezing bank accounts for alleged money laundering.
The ED is investigating at least ten cryptocurrency exchanges for allegedly laundering more than Rs 1,000 crore, identified as proceeds of crime from the firms accused in the instant loan-app case.
The ED is looking into 16 fintech firms and instant loan applications, including WazirX. The agency suspects that some of them used the WazirX platform.
WazirX claims to have been collaborating with authorities by providing them with all necessary facts, information, and documents from the suspected accused firms.
WazirX has a no-tolerance policy toward criminal activity on its platform and mandates users to utilize it solely for legal and legitimate causes. On WazirX, the users agree to follow all applicable laws, according to the exchange's blog post.
In its statement, the company stated that it has no affiliation with any of the alleged accused fintech and instant lending application entities that appear to be the target of an ED investigation.
The exchange stated that it is performing KYC/AML checks despite having no legal obligation to do so. The exchange reiterated that WazirX is like any other intermediary whose platform may have been misused.
After a thorough internal investigation, WazirX discovered that the majority of the users whose information was requested by ED had previously been classified as suspects by WazirX and were blocked in 2020-2021.
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