NEW DELHI: The Enforcement Directorate (ED) on Friday mentioned it has frozen financial institution deposits of Rs 64.67 crore as a part of a cash laundering probe towards crypto foreign money change WazirX.
The federal company mentioned it performed raids towards a director of Zanmai Lab Pvt Ltd, which owns WazirX, on August 3 in Hyderabad and alleged he was “non-cooperative”.
The company’s probe towards the crypto change is linked to its ongoing investigation towards a variety of Chinese language mortgage apps (cellular purposes) working in India.
The company had charged WazirX final yr for alleged contravention of the Overseas Change Administration Act (FEMA).
“It was discovered that Sameer Mhatre, Director WazirX, has full distant entry to the database of WazirX, however regardless of that he’s not offering the main points of the transactions regarding the crypto belongings, bought from the proceeds of crime of on the spot mortgage app fraud.”
“The lax KYC norms, unfastened regulatory management of transactions between WazirX and Binance, non-recording of transactions on block chains to save lots of prices and non-recording of the KYC of the alternative wallets has ensured that WazirX isn’t in a position to give any account for the lacking crypto belongings,” the ED alleged in an announcement.
It mentioned the corporate made no efforts to hint these crypto belongings.
“By encouraging obscurity and having lax AML (anti-money laundering) norms, it has actively assisted round 16 accused fintech firms in laundering the proceeds of crime utilizing the crypto route,” it mentioned.
Subsequently, the ED mentioned, equal movable belongings to the extent of Rs 64.67 crore mendacity with WazirX had been frozen below the Prevention of Cash Laundering Act (PMLA).