• The assets of cryptocurrency platform WazirX have been unfrozen by India’s Enforcement Directorate

  • WazirX’s assets have now been unfrozen by India’s government Enforcement Directorate (ED). The ED launched a probe into the crypto platform last year after suspecting violations of foreign exchange regulations.

    The ED froze assets worth $8.16 million, or 646.70 million INR, as a result of the inquiry.

    This is finally good news for WazirX after the ED seized the exchange’s assets last month in connection with an ongoing probe into loan apps and applications that provide short-term loans.

    Around 16 fintech companies that utilized the WazirX platform were investigated.

    The cryptocurrency exchange mentioned in a blog post,

    After an in-depth internal investigation, WazirX noticed that most of the users whose information was sought by ED were already identified as suspicious by WazirX internally and were blocked in 2020-2021,” the company said in a blog.

    WazirX will be free to resume its banking operations as usual now that the investigations have ended.

    WazirX, a cryptocurrency exchange, collaborated with ED.

    The crypto exchange has stated that it has cooperated with the investigators since the commencement of this probe.

    WazirX stated that it has provided all of the necessary details, information, and papers of the alleged accused companies that utilized the platform.

    The ED inquiry has resulted in a significant setback for WazirX, an Indian corporation. Binance has effectively rejected WazirX as a result of this.

    Binance CEO Changpeng Zhao disavowed WazirX during the probe. By then, the ED had frozen WazirX’s assets. Binance and WazirX’s agreement was intended to be finalized in 2019.

    Zhao announced the acquisition of WazirX in 2019. However, following the saga with the ED, Binance stated that the transaction was never executed.

    Nischal Shetty, the founder of WazirX, has repeatedly said that the company was acquired by Binance.

    The War Between WazirX and Binance

    WazirX and Binance co-founders Nischal Shetty and Changpeng Zhao exchanged furious tweets last month as a result of the antagonism.

    Binance then shut down the off-chain fund transfer mechanism between WazirX and Binance. Off-chain fund transfers are transactions that occur outside of the blockchain network.

    Off-chain transactions are popular since there is considerably less gas fee involved, as well as zero-low cost.

    According to WazirX’s blog post,

    The Enforcement Directorate (ED) has been conducting investigations of 16 fintech companies and instant loan apps. Some out of them have happened to use the WazirX platform. WazirX has been cooperating with the investigators by providing them with all the necessary details, information, and documents of the alleged accused companies who used the WazirX platform

    Recently, the ED raided a number of fintech companies in connection with the rising threat posed by Chinese loan apps.

    The rise in digital lending by unlicensed and fraudulent apps has sparked widespread alarm among the Indian government. The Reserve Bank of India and the ED are continuously on the lookout for such firms.

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