Crypto Exchange WazirX Being Probed For Alleged Rs 2,790 Crore Money Laundering
NDTV
The ED is investigating two cases related to Crypto-currency against WazirX under the provisions of Foreign Exchange Management Act, 1999 (FEMA).
Minister of State for Finance Pankaj Chaudhary on Tuesday said the Directorate of Enforcement is probing alleged money laundering of Rs 2,790 crore through crypto exchange WazirX.
The ED is investigating two cases related to Crypto-currency against WazirX under the provisions of Foreign Exchange Management Act, 1999 (FEMA), he said in a written reply to the Rajya Sabha.
"In one of the cases, investigation done so far has revealed that one Indian Crypto-exchange platform, Wazirx, operated by Zanmai Labs Private Limited in India was using the walled infrastructure of Cayman Island based exchange BINANCE. Further it has been found that all crypto transactions between these 2 exchanges were not even being recorded on the blockchains and were thus cloaked in mystery," he said.
Accordingly, he said, a Show Cause Notice (SCN) has been issued under the provisions of FEMA against WaxirX for allowing outward remittance of crypto assets worth Rs 2,790 crore to unknown wallets.
