Indian crypto exchange WazirX suspected of laundering $350 million

Local economic intelligence has recorded that the company allowed foreign users to convert cryptocurrencies on its platform

04.08.2022 - 11:55

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What’s new? India has launched an investigation into cryptocurrency exchange WazirX, owned by Binance, for possible laundering of $350 million. This is reported by The Economic Times, citing Indian Finance Minister Pankaj Chaudhary. The investigation is being conducted by the Directorate of Enforcement.

Information on the website of The Economic Times

Details of the case. Intelligence suspects that the exchange is used to launder funds through unidentified wallets. According to Chaudhary, it was recorded that the cryptocurrency storage system on the WazirX platform is linked to Binance wallets. In fact, there was not a single transaction between the two exchanges that passed through the blockchain.

According to the finance minister, it was found that WazirX allowed foreign users to convert one cryptocurrency to another on its platform as well as through transfers from third-party exchanges such as FTX, Binance, and others.

In June 2021, the Indian authorities already filed money-laundering charges against the exchange. In January, authorities accused WazirX of evading goods and services tax. At that time, the total amount, including fines, exceeded $6 million. However, representatives of the exchange denied the charges, considering them unfounded, and assured of the timely payment of all required taxes.

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