Breaking: Indian Crypto Exchange Faces Investigation Over Money Laundering Charges
The Enforcement Directorate (ED), an economic intelligence agency responsible for enforcing economic laws in India issued a show-cause notice to crypto exchange Wazirx along with its directors today, over crypto transactions amounting to Rs 2,790.74 crore ($38.18 million).
ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore.— ED (@dir_ed) June 11, 2021
The crypto exchange was served the notice under the Foreign Exchange Management Act (FEMA) 1999 for violating money-laundering laws. The notice was in connection with another ongoing investigation into a Chinese-owned “illegal” online betting application.
The ED in its official statement alleged that Chinese nationals converted over $7 million worth of Indian currency into stablecoin Tether and later transferred it to Binance exchange wallets.
The investigation agency further claimed that during the said period, users received over 880 crores ($12M) in the Wazirx wallet from Binance accounts and sent out 1,400 crores ($19.18M) worth of crypto assets to Binance accounts.
“None of these transactions are available on the blockchain for any audit/investigation.”