India’s Enforcement Directorate (ED) has opened the bank accounts of cryptocurrency exchange Wazirx, the company said. The accounts were suspended following a federal agency investigation into 16 fintech companies and instant loan applications.
Wazirx said his bank accounts are now frozen.
The Indian kriptovalyutnogo exchange Wazirx said on Monday that the Indian government’s law enforcement and economic intelligence agency, the Enforcement Directorate (ED), has seized its bank accounts.
The company explained that the ED has been investigating 16 fintech companies and instant loan apps. Wazirx “has nothing to do with the alleged fintech and quick loan app entities that appear to be the subject of the ED investigation,” the crypto exchange said, stressing that some of these companies “used the Wazirx platform.”
The Indian crypto exchange used the platform to “cooperate with the investigators by providing all necessary details, information and documents of the accused companies,” he stressed.
“Due to active cooperation by Wazirx and active Anti-Money Laundering (AML) checks to block suspicious accounts, ED has frozen Wazirx’s bank accounts.
Vazirx is now in a position to resume banking as usual.
The ED had earlier in August announced freezing of Wazirx’s bank assets. The agency explained that the action was part of a money laundering probe against non-banking finance companies (NBFCs) and their fintech partners for “predatory lending practices” in violation of Reserve Bank of India (RBI) guidelines.
Vazirx said on Monday it had conducted a thorough internal investigation.
Most of the users whose information was sought by ED were identified internally by Wazirx as suspicious and were banned in 2020-2021.
Following Wazirx, the EDA froze $46 million worth of crypto and bank assets backed by Peter Thiel. In August, the agency sought out crypto exchange Coinswitch Kuber. But the CEO of the exchange said it was not related to money laundering.
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