Binance CEO Clarifies WazirX Involvement as India Raids Director

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Last Updated on August 6, 2022 by Bitfinsider

According to a press release from India’s Enforcement Directorate (ED), Binance is allegedly involved in a money laundering scheme created with WazirX. In this country, this entity operates as a crypto exchange platform; one of its offices was raided on August 3rd as part of an ongoing investigation.

Binance CEO Changpeng Zhao has denied the allegations, claiming that the company has no financial ties to WazirX and has no equity in Zanmai Labs. The latter is WazirX’s parent company and one of the main alleged actors in the money laundering scheme, according to the Indian authorities’ release.

As a result of the raid, local authorities have frozen over $8 million, or 64.67 Indian Crore (INR), from WazirX bank accounts. According to the ED, several companies have allegedly been operating a lending business without a license by diverting funds in the form of cryptocurrencies to WazirX.

These funds are allegedly used to launder money in a scheme involving “unknown foreign wallets” and phantom fintech firms.

Authorities questioned Nischal Shetty, Managing Director of Zanmain Labs, the company allegedly controlling WazirX, as part of the investigation. According to the executive, Binance handles the majority of WazirX’s transactions.

Authorities believe the suspects have given “contradictory and ambiguous answers” in order to obstruct the investigation. Furthermore, the ED believes that the cryptocurrency exchange platform failed to implement strong Know Your Customer (KYC) and Anti Money Laundering (AML) policies.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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