India Investigates Cryptocurrency Exchange Wazirx into China Money Laundering Case

India's Executive Directorate (ED) has reportedly notified Wazirx, one of India's largest cryptocurrency exchanges, under the Foreign Exchange Management Act (FEMA) of 1999. The ED explains that the investigation was initiated "on the basis of an ongoing money laundering investigation into illegal online gambling practices owned by China." ED's Executive Directorate of Wazirx FEMA Investigation (ED) India said on Friday it has issued a Statement of Cause (SCN) to Wazirx CEO Nischal Shetty and co-founder Sameer Hanuman Mhatre. Wazirx is one of the largest crypto exchanges in the country. ED is the law enforcement and economic intelligence agency of India. The ED was issued "for transactions involving cryptocurrencies worth 2,790.74 crore [$381.93 million] under the Foreign Exchange Management Act, 1999, (FEMA)," adding: ED has initiated a FEMA investigation based on the ongoing money laundering investigation. Chinese illegal online gambling apps. The ED announced that its investigation revealed that the accused Chinese citizens laundered approximately 57 crore worth of proceeds by converting their INR deposits to tether (USDT) and transferring them to Binance. The official claims that during the period under investigation, Wazirx users received INR 880 worth of crypto from their Binance accounts and transferred INR 1,400 worth of crypto to their Binance accounts. The ED noted that "none of these transactions are available on the blockchain for any audit/investigation", emphasizing that Wazirx clients can transfer "valuable" cryptocurrencies to any person, regardless of location and nationality, without any proper documentation. It is a safe haven for users looking for money laundering or other illegal activities. The ED claims that "Wazirx failed to collect the required documentation in clear violation of core Mandatory Anti-Money Laundering (AML) rules.

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