Indian Authorities Unfreeze Wazirx’s Bank Accounts, the Crypto Exchange Says

The company announced that Wazirx's bank accounts have been unfrozen by India's Enforcement Directorate. These accounts were frozen during an investigation by the federal agency into 16 fintech firms and instant loan applications.

Wazirx Declares That Its Bank Accounts are Now Unfrozen

Wazirx, an Indian cryptocurrency exchange, announced Monday that the Enforcement Directorate of India (ED), the law enforcement agency and economic intelligence agency of India's government, had unfrozen its bank accounts.

According to the company, 16 instant loan app and fintech companies were being investigated by the ED. Although Wazirx stressed that it has no association with any of those alleged fintech or instant loan app entities that are the subject of ED investigation, the crypto exchange admitted that some of these companies have "occurred to use the Wazirx Platform."

The Indian cryptocurrency exchange stated that it had been cooperating with investigators and provided all details, information, documents, and other documentation of the alleged companies that used its platform.

"Due to active cooperation extended Wazirx, and active anti-money laundering checks (AML), that led to the blockage of suspicious accounts. ED has unfrozen bank accounts of Wazirx," said the crypto exchange.

Wazirx can now continue its banking operations as normal.

In early August, the ED announced it had frozen Wazirx's bank assets. The agency explained that it was conducting a money laundering investigation into nonbank financial companies (NBFCs) and their partners in fintech for "predatory lending practice" in violation of Reserve Bank of India guidelines.

Wazirx clarified Monday that an internal investigation had revealed that:

Most of the people whose data was sought by ED had been identified internally as being suspicious and were therefore blocked in 2020-2021.

The ED froze $46 million worth of crypto and bank assets at Vauld, a crypto-platform backed by Peter Thiel, in response to Wazirx. The agency also searched Coinswitch Kuber, a crypto exchange. The exchange CEO stated that the search was not connected to money laundering investigations.

What are your thoughts on the ED allowing Wazirx to unfreeze its bank accounts? Please leave your comments below.

By: Kevin Helms
Title: Indian Authorities Unfreeze Wazirx’s Bank Accounts, the Crypto Exchange Says
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Published Date: Tue, 13 Sep 2022 03:30:01 +0000

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