According to the blog post, “Due to the active cooperation extended by WazirX and active Anti-money laundering (AML) checks that led to the blocking of suspicious accounts, ED has unfrozen the bank accounts of WazirX. WazirX is now in a position to continue its banking operations as usual.”
India's Enforcement Directorate (ED) lifted the sanctions it had earlier imposed on WazirX’s bank accounts, allowing the latter to resume its services.
Earlier in August, the Enforcement Directorate launched a probe into the crypto exchanges operating in India over allegations of laundering over Rs 67.64 Cr ($8.16M), with WazirX being one of the primary suspects. Additionally, the ED froze the Binance-backed exchange's assets on August 5, causing the latter to suspend withdrawals.
However, after wrapping up the investigation, the ED unfroze WazirX’s accounts, thus allowing the crypto exchange platform to resume services.
In a blog post, WazirX clarifies that it had cooperated with the agency by providing them with all the details of the 16 fintech companies that used its platform.
“WazirX has a no-tolerance policy towards any illegal activities using its platform and mandates the users to use it for legal and bonafide purposes only.”
WazirX also cited that the firm has been carrying out Anti Money Laundering (AML) and Know You Customer (KYC) norms, and was an intermediary for the fintech firms rather than an accomplice.
Lastly, WazirX reported it had already blocked the majority of users being investigated by the ED in 2019-2020, thus clearing the platform of crypto laundering suspicions.
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