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WazirX Under ED Probe For Money Laundering Case

  • Crypto Exchange WazirX under ED Probe for Money Laundering.
  • Robinhood Exchange was fined $30M by ED.
  • ED Probing against Foreign Exchange Management Act 1999 (FEMA).

WazirX Cryptocurrency Exchange Is Being Investigated By ED. It is under Rs 2790 Cr money laundering investigation.

WazirX Under ED Probe

If you have also used the WazirX exchange, then you must be aware that this exchange was used only for depositing money from banks.

Only small amounts were traded on this exchange. The funds were traded only by taking funds to the international exchange by the big traders.

Decentralized exchanges do not provide any tracking record. Also, decentralized transactions can’t be recorded. So, investigating agencies looking for almost Rs 2790 crores transferred without any record.

Case on WazirX Exchange

Money laundering case of almost, 2790 crores. WazirX is a centralized cryptocurrency exchange, where we can do our trading only by doing KYC. No record remains when money is transferred on a decentralized exchange or in a decentralized wallet.

When you transfer funds from Centralized Exchange to Decentralized Exchange, it appears as if funds have been transferred incorrectly.

The cryptocurrency market is anyway mostly unregulated all over the world, and it is not even given legal recognition. So please, money transferred in currency is kept in the black money category. The problems of almost all exchanges have increased since the Indian government started monitoring the misdeeds.

Act Applied on WazirX Exchange

Foreign Exchange Management Act 1999 (FEMA) is applied to the WazirX exchange. WazirX Exchange was being operated by India Zanmai Labs Pvt Ltd. Binance was the parent company of WazirX exchange.

But the transaction between these two crypto exchanges was not verified on blockchain transaction. So, this proves money laundering done by the WazirX exchange.

So, WazirX was charged for sending 2790 crores of Crypto remittance to unknown wallets.

Similar Case And Fine For Money Laundering Act

Robinhood’s exchange was also found in a similar money laundering case. A fine of rupees $30M was imposed by European Agencies for violating anti-money laundering policies.

Ever since the crypto market has been regulated, the governments of different countries are investigating it. The Indian government has also simplified its policy by bringing cryptocurrency under the tax net and TDS.

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