Thursday, August 11, 2022
CryptocurrencyED raids director of cryptocurrency-exchange WazirX, seizes assets worth Rs 64.67 crore

ED raids director of cryptocurrency-exchange WazirX, seizes assets worth Rs 64.67 crore

The Enforcement Directorate (ED) on Friday, August 5, raided the premises belonging to the director of cryptocurrency-exchange WazirX and seized bank properties worth around Rs 64.67 crore.

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The Enforcement Directorate (ED) on Friday, August 5, raided the premises belonging to the director of cryptocurrency-exchange WazirX and seized bank properties worth around Rs 64.67 crore. The ED took this action on charges of helping accused instant loan app companies in misappropriating or laundering fraudulent money through purchase and transfer of virtual cryptocurrencies.

Earlier on August 2, the Finance Ministry, in reply to a question in the Rajya Sabha, had informed that the ED is probing two cases against Zanmai Labs Private ltd under the provisions of the Foreign Exchange Management Act (FEMA) 1999.

Let us tell you that Zanmai Labs Private ltd company runs the popular cryptocurrency exchange ‘WazirX’. The ministry said that Zanmai Labs Private ltd used to use Binance’s infrastructure. Binance is one of the largest cryptocurrency exchanges in the world. It acquired WazirX in the year 2019.

The Finance Ministry further said, “It has been found that all cryptocurrency transactions that took place between these 2 exchanges were not being recorded on the blockchain and thus an attempt has been made to conceal a secret.

Subsequently, under the provisions of FEMA, anonymity to WazirX.” A show cause notice has been issued to allow remittance of crypto assets worth Rs 2,790 crore to the wallet.

The ministry explained that WazirX fulfilled requests from foreign users to convert one cryptocurrency to another using transfers from third party exchanges such as FTX, Binance, etc.

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