The Enforcement Directorate (ED) in India conducted a series of searches at the premises of one of the directors from Zanmai Labs Private Limited, which owns and operates a cryptocurrency exchange platform WazirX. The ED has frozen bank assets worth Rs 64.67 crores as part of the investigation into money laundering activities in India involving digital currencies.
WazirX is a cryptocurrency exchange that allows traders in India to trade Bitcoin, Ethereum, and other major cryptocurrencies.
The Central Agency took action against the WazirX Director for assisting fraudsters by allowing them to use his company as an exchange platform for laundering money through virtual crypto assets.
The Times of India quotes the Enforcement Directorate as saying that loan app firms used cryptocurrency to take money out of the country after they started investigating them. Most transactions are done through Wazir-X, and funds are transferred to Hong Kong.
The Reserve Bank of India has launched an investigation against several Indian financial institutes and their fintech partners for lending practices that violate guidelines.