ED freezes Rs 64.7 crore in bank accounts of crypto exchange WazirX

Cryptocurrency exchange platform WazirX bank assets worth Rs 64.67 crore were frozen after the Enforcement Directorate on Friday conducted searches. The searches were done in connection with a case of the crypto exchange platform assisting accused instant loan app companies in the laundering money via purchase and transfer of virtual crypto assets."Directorate of Enforcement (ED) has conducted searches on one of the Directors of M/s Zanmai Lab Pvt Ltd which owns the popular Crypto-currency exchange WazirX and has issued a freezing order to freeze their Bank balances to the tune of Rs 64.67 crore," the probe agency said in a statement. The federal agency said it conducted raids against a director of Zanmai Lab Pvt Ltd, which owns WazirX, on August 3 in Hyderabad and alleged he was "non-cooperative".

Additionally, ED has also sent summons to these crypto exchanges. "It is seen that maximum amount of funds were diverted to WazirX exchange and the crypto-assets so purchased have been diverted to unknown foreign wallets," it said."Because of the non-cooperative stand of the Director of WazirX exchange, a search operation was conducted under PMLA on 3.8.2022 and it was found that Mr Sameer Mhatre, Director WazirX, has complete remote access to the database of WazirX, but despite that he is not providing the details of the transactions relating to the crypto assets, purchased from the proceeds of crime of Instant Loan APP fraud," ED stated.The agency's probe against the crypto exchange is linked to its ongoing investigation against a number of Chinese loan apps (mobile applications) working in India.ED also pointed out that after the criminal investigation began, many of these fintech apps have shut shop and diverted away the huge profits earned using the above modus operandi. "While doing fund trail investigation, ED found that large amount of funds were diverted by the fintech companies to purchase crypto assets and then launder them abroad. These companies and the virtual assets are untraceable at the moment."