Social News XYZ     

ED notice to WazirX, its directors for Rs 2,790 cr transactions

ED notice to WazirX, its directors for Rs 2,790 cr transactions

New Delhi, June 11 (SocialNews.XYZ) The Enforcement Directorate (ED) on Friday said that it has issued a show cause notice to Crypto-Currency Exchange Zanmai Labs Pvt Ltd (WazirX) and its Directors Nischal Shetty and Sameer Hanuman Mhatre for transactions involving crypto-currencies worth Rs 2,790.74 crore, officials said.

The ED had initiated Foreign Exchange Management Act (FEMA) investigation on the basis of the ongoing money laundering probe into Chinese owned illegal online betting applications.

 

The official said that during investigation, it was seen that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore by converting the Indian rupees deposits into Crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

He said that WazirX allows vide range of transactions with Crypto-currencies(CCs) including exchange of CCs with INR and vice-versa, exchange of CCs, person to person (P2P) transactions and even transfer/receipt of crypto-currency held in its pool accounts to wallets of other exchanges which could be held by foreigners in foreign locations.

The ED official claimed that WazirX does not collect the requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines.

"In the period under investigation, users of WazirX via its pool account, have received incoming crypto-currency worth Rs 880 crore from Binance accounts and transferred out Crypto-Currency worth Rs 1,400 crore to Binance accounts," he said.

He said that none of these transactions are available on the blockchain for any audit or investigation.

"It was found that the WazirX Clients could transfer 'valuable' crypto-currencies to any person irrespective of its location and nationality without any proper documentation whatsoever, making it a safe haven for users looking for money laundering or other illegitimate activities," he said.

Source: IANS

Facebook Comments
ED notice to WazirX, its directors for Rs 2,790 cr transactions

About Gopi

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz

PHP Code Snippets Powered By : XYZScripts.com
%d bloggers like this: