The Enforcement Directorate of India unfroze the bank accounts of the Indian crypto exchange WazirX, according to a statement from the exchange.
WazirX says it has been cooperating with local authorities during their Anti-Money Laundering investigation by providing all of the necessary documents and details requested. The investigation targeted 16 fintech companies and instant loan apps, some of which solicited services from the exchange.
The exchange, however, said it has a no-tolerance stance toward any illegal activities on the platform. Additionally, it said that most of the targeted users in the ED investigation had already been flagged as suspicious by WazirX and blocked in 2020-2021.
WazirX stated that the case is still under investigation, but funds have been unfrozen due to no suspicious activity found, with no further comment as of now. Funds in WazirX bank accounts had been frozen since Aug. 5, when the ED initially announced the investigation. The locked funds amounted to over $8.1 million in total.
The ED’s accusations against WazirX claimed it had processed $130 million in transfers of funds to wallets under investigation for illegal activities. In light of the accusations, Binance, which once tried to acquire the company in 2019, distanced itself from the exchange.
Prior to the recent activity, the exchange was under ED investigation in 2021 for money laundering charges related to illegal online gambling proceeds tied to Chinese entities.
