Popular Indian crypto exchange WazirX shared an update about the ongoing investigation of the Indian investigation agency ED against money laundering & use of crypto platforms including WazirX.
WazirX is a popular Indian crypto exchange, which was acquired by the popular crypto exchange Binance in late 2019. In recent months, the CEOs of both exchanges tweeted against each other about the ownership of the WazirX exchange. On one side Binance CEO Zhao claimed that Binance didn’t have full control on WazirX, on the other hand, WazirX CEO Nischal Shetty claimed that Binance owned full control of WazirX.
On 12 September, the WazirX exchange reported about the ongoing investigation of the Indian Enforcement Directorate (ED) on multiple Fintech & crypto firms.
The ED team is doing an investigation to find out all the bad actors and helpers of the Chinese instant loan service provider companies, which laundered money.
WazirX exchange confirmed that those bad actors used the WazirX platform to launder money but the exchange already detected their illegal activities and banned them in between 2020 to 2021.
Further exchange confirmed that due to better cooperation with ED, to help them against bad actors, ED unfrozen the bank accounts of the exchange. So now WazirX is in a position to operate its banking operations freely.
“ED has unfrozen the bank accounts of WazirX. WazirX is now in a position to continue its banking operations as usual.”
Binance vs WazirX
At the beginning of August of this year, WazirX founder Nischal Shetty & Binance founder Changpeng Zhao tweeted against each other.
Binance CEO Zhao said that WazirX always refused to give full access to the WazirX exchange and only provided AWS login & domain control.
Zhao also claimed that there are huge chances that the WazirX team didn’t cooperate with the Indian ED agency regarding the money laundering of 6 Chinese apps. Due to the controversy, Binance & WazirX exchange suspended off-chain crypto transaction support to each other.