WazirX is back on track
Binance subsidiary’s accounts unfrozen
The exchange was previously accused of money laundering
Today, 12 September, the Directorate of Enforcement (ED) officially unfroze the multi-million dollar accounts of cryptocurrency exchange WazirX. The site had previously been accused of aiding and abetting money laundering.
The investigation against WazirX began last month. The management of the exchange was accused of criminal facilitation and harbouring illegal financial flows.
Following this, on August 5, ED inspectors raided the mansion of WazirX CEO Samir Mhatra. Authorities soon froze the company’s accounts, which then held $8.1 million.
A total of 16 fintech firms are under investigation, most of which were using the WazirX infrastructure. It was through this platform that billions of rupees of unaccounted income passed through.
Also note that the exchange is owned by Binance, though Changpeng Zhao claims otherwise. The investigation does not just “cast a shadow” on the cryptocurrency giant, but also threatens the platform with real penalties.
But now it appears that the seizure of WazirX’s accounts has been lifted. This was announced directly by the firm itself in an official blog post. The post also stated that the company’s management would continue to cooperate with the governing authorities as part of the investigation.
The exchange has distanced itself as much as possible from ‘troubled’ clients. According to the administration’s statement, most of the accounts that appear in the case were blocked by the platform back in 2020-2021.
In a media comment, WazirX noted that the funds were unfrozen due to a lack of corpus delicti. But the case is still under investigation and the authorities’ decision may change in the future.