Crypto exchange in India remained under inspection due to the charge of money laundering in the session between 2021 and 2022 by the Enforcement Directorate. These accusations brought about the freeze of funds of up to $8.1M in the bank accounts.

On Monday, a report from WazirX – a crypto exchange – revealed that those frozen bank accounts have been unblocked by the Enforcement Directorate of India. WazirX has mentioned that in this whole period of investigation it remained patiently cooperative. It supported the authorities in all the needed documents as well as information. The exchange provided full cooperation during this awful time.

Indian Authorities Release the Millions’ Worth in the Bank Accounts of WazirX

16 fintech organizations, including a few urgent loan applications, were alleged to be investigated, Few of these requested help from the organization. It has been claimed by the exchange that it has a zero-tolerance policy against unlawful acts. It does not permit such kinds of activities. In the background, previously in 2021, a bulk of customers was found dubious as well as blocked by the Enforcement Directorate of India.

WazirX, in an interview, clarified that the blocked bank accounts have been unblocked because the ED of India remained unsuccessful to catch any doubtful act during the inspection. As the Enforcement Directorate declared the beginning of the scrutiny, the suspected funds in the bank accounts were frozen on the behalf of the authorities. They remained blocked since the 5th of August. The amount of money being blocked was approximately $8.1M.

The allegation filed against WazirX was that it has supported different companies (which offered applications for urgent money lending) for illegal activities. ED’s allegations have claimed that the platform processed nearly $130M in assets transactions to wallets for illegitimate activities. In 2019, Binance attempted to purchase the organization but after listening to the announcement of the trial against the WazirX exchange, it planned to maintain a distance.

Binance Pulls Back from Its Stance regarding WazirX

Binance announced its detachment from WazirX through a tweet. The accusations proposed against WazirX include the proceeds taken from illegitimate online gambling as well as money laundering in collaboration with Chinese organizations. The investigation was not only conducted for WazirX rather it later on targeted Flipvolt (a crypto exchange) also.

The Enforcement Directorate of India blocked approximately $46.4M in the bank balances of Yellow Tune and Flipvolt. The ED authorities have declared that the assets will remain frozen until and unless the exchange justifies its stance regarding the criminal proceeds transferred by it outside the country.