Wazirx: ED investigates WazirX for allowing Rs 2,790 crore payout to unknown wallets

The government said on Tuesday that the Execution Directorate investigation into two cases related to cryptocurrency against commercial exchange WazirX to allow outward remittance of crypto assets worth ₹2790 crore for unknown wallets.

“A show cause notice (SCN) has been issued under FEMA provisions against WaxirX for allowing the outward transfer of crypto assets worth ₹2,790 Crore to unknown wallets,” said the Minister of State for Finance Pankaj Chaudhary in response to a question to Rajya Sabha. .

The investigation revealed that Indian cryptocurrency exchange Wazirx, operated by Zanmai Labs Private Limited in India, used the bricked-up infrastructure of Cayman Islands-based exchange BINANCE, Chaudhary said in a written response.

He added that it was found that all crypto transactions between these two exchanges were not even recorded on the blockchains and hence shrouded in mystery.

Moreover, in another instance, it is noticed that Indian exchanges i.e. WazirX has allowed the request of foreign users to convert one crypto to another on its own platform as well as using the transfer from third-party exchanges, namely FTX, BINANCE, etc., Chaudhary said.

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