WazirX Resumes Normal Operations after India’s ED ‘Unfreezes’ its Bank Accounts.
India’s Enforcement Directorate (ED) has lifted the freeze on WazirX’s bank accounts, the cryptocurrency exchange said in a blog post on Monday.
According to the post, ED has unblocked Wazir X’s bank accounts due to the company’s cooperation and rigorous anti-money laundering checks. WazirX is now able to continue its regular banking operations.
“Due to the active cooperation extended by WazirX and active Anti-money laundering (AML) checks that led to the blocking of suspicious accounts, ED has unfrozen the bank accounts of WazirX. WazirX is now positioned to continue its banking operations as usual.”
WazirX’s accounts were frozen last month by the ED concerning an ongoing investigation into alleged fraud on instant loan apps. According to ED, the exchange was involved in a doubted role in aiding instant loan app companies to launder black money by converting them into crypto.
“WazirX clarified that it has no association with any of the alleged accused Fintech and Instant loan app entities which appear to be the subject of ED investigation, and is carrying out the KYC/AML checks despite having no legal obligation to do so.
In the span of six months, WazirX experienced a 176% surge in requests for information from law enforcement agencies–going from 377 to 1,023. Of these submissions, Indian law enforcement accounted for 952, while 95% of crypto-related fraud occurred independently of any involvement with Blockchain technology.
ED has investigations underway against several cryptocurrency companies due to accusations of money laundering into overseas wallets. One month ago, the organization performed raids on five sites associated with another crypto firm, CoinSwitch Kuber. In response, that company issued a statement saying they worked together with ED during the investigation.
Recall that a month ago, the Indian federal Enforcement Directorate froze assets worth 646.70 million Rs, almost $8.16 million of WazirX.