ED investigating WazirX for allowing Rs 2,790 crore of remittance to unknown wallets

By Kevin Colleran On Aug 3, 2022

The government on Tuesday said that the Directorate of Enforcement is investigating two cases related to cryptocurrency against trading exchange WazirX for allowing outward remittance of crypto assets worth ₹2790 crore to unknown wallets.

“A Show Cause Notice (SCN) has been issued under the provisions of FEMA against WaxirX for allowing outward remittance of crypto assets worth ₹2790 Crore to unknown wallets,” minister of state for finance Pankaj Chaudhary said in reply to a question in Rajya Sabha.

The investigation has revealed that the Indian cryptocurrency exchange Wazirx, operated by Zanmai Labs Private Limited in India, was using the walled infrastructure of Cayman Island-based exchange BINANCE, Chaudhary said in a written reply.

He added that it has been found that all crypto transactions between these two exchanges were not even being recorded on the blockchains and were thus cloaked in mystery.

Further, in another case, it is noticed that Indian exchanges namely WazirX has allowed the foreign users’ request to convert one crypto into another on its own platform as well as by using transfer from third-party exchanges namely FTX, BINANCE, etc, Chaudhary said.

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