ED issued summonses to several cryptocurrency exchanges last month on charges of money laundering & breach of foreign exchange standards.
The funds of the cryptocurrency exchange Enforcement Directorate (ED) have been frozen. In a written report only recently, Minister of State for Finance Pankaj Choudhary revealed that the ED is looking into two cryptocurrency-related charges against its cryptocurrency exchanges under the Foreign Exchange Management Act. (FEMA).
The ED is looking into the possibility of Rs 2,790 crore being laundered through WazirX. In light of the disruptions discovered during an ED investigation of the home of a member of Janmai Lab, the business that operates WazirX, it’s been decided to block the director’s account balances of Rs 64.67 crore.
In the previous month, ED had sent out summons –
The Economic and Financial Crimes Commission (ED) issued summonses to a number of cryptocurrency exchanges at the end of the previous month on allegations of money laundering & violation of foreign currency exchange standards. CoinDCX, WazirX, and Coinswitch Kuber were among the exchangers that received the summons when it was sent out.
Wazirx is a cryptocurrency exchange platform that is controlled by Janmai Labs Pvt Ltd in India. According to the Minister of State for Finance Pankaj Choudhary, the investigation revealed that Wazirx was using the facilities of the exchange Binance, which is based in the Cayman Islands.
According to the findings of the report, some of the crypto transactions that took place between these exchange platforms were not being stored on the blockchain and hence remained private.
A significant amount of money was spent
During the course of the investigation, the ED came to the conclusion that fintech companies invested enormous sums of money in the purchase and subsequent export of crypto assets.
These businesses & their virtual properties are currently impossible to track down for any reason. The maximum number was sent to the WazirX exchange, and also the crypto-assets that were bought with that money were sent to a foreign wallet whose owner was unknown.