Crypto News: Big action by ED against crypto exchange WazirX, ban on bank deposits of Rs 64 crore

Crypto News: The Enforcement Directorate (ED) on Friday banned bank deposits worth Rs 64.67 crore in connection with its money laundering probe against cryptocurrency exchange WazirX.  The ED said that it has conducted raids in Hyderabad on August 3 against Janmai Lab Pvt Ltd, the owner of WazirX.  He is the owner of the famous cryptocurrency exchange named WazirX.

WazirX accused of violating FEMA

The agency's investigation against the crypto exchange is related to the ongoing investigation against several Chinese lending apps running in India.  The ED had last year accused WazirX of violating the Foreign Exchange Management Act (FEMA).  The probe agency said that WazirX director Sameer Mhatre had full access to WazirX's database even when he was remote.  Despite this, he is not giving details of transactions related to crypto assets.  These assets have been purchased from the proceeds of crime committed through the Quick Loans app.

ED bans bank deposits of Rs 64 crore

The ED said that movable assets of Rs 64.67 crore of WazirX have been banned under the Prevention of Money Laundering Act.  The Enforcement Directorate said that the crypto-exchange has actively helped around 16 accused fintech companies to legalize erroneously earned money through the crypto route by encouraging ambiguity and weakening anti-money laundering norms.