‘No affiliations, unaware about purpose of transactions’, WazirX on newest ED probe

Days after the Enforcement Directorate (ED) probed WazirX, India’s largest cryptocurrency trade, the corporate mentioned that it has no affiliation with any customers who bask in illicit actions. This comes after the ED on Friday mentioned it has seized Rs 65 crore after it discovered proof in opposition to the corporate whereas investigating non-banking monetary firms (NBFC) and their fintech companions indulging in predatory lending practices.

“ED appears to be investigating the transactions of certain users and Zanmai Labs  (the entity operating WazirX) has no affiliation to such users and is unaware about the purpose of their transactions. Zanmai Labs is in the position of any other intermediary whose platform may have been misused,” WazirX mentioned in a public assertion.

According to the ED, Chinese mortgage lending firms that had been shut down in India diverted their funds by way of crypto exchanges, and the utmost quantity of funds was diverted to the WazirX trade.

The firm additionally made it clear that it’s owned by Zanmai Labs and Binance. Although, in a Twitter feud final week, Binance CEO Changpeng Zhao mentioned that it doesn’t personal WazirX, and “only provides wallet services for WazirX as a tech solution.”

According to WazirX, it has a no-tolerance coverage towards any unlawful actions. “Users agree in the User Agreement to use WazirX in accordance with applicable law. Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity. Our KYC/AML terms and processes are available on the platform publicly,” the crypto trade mentioned, including that it “does not accept any cash transactions.”

On Monday, Binance disabled off chain transaction this created a panic amongst customers who needed to switch their funds from WazirX to Binance, with out paying any fuel payment. WazirX believes that there appears to be a serious misunderstanding about off-chain transactions. “Off-chain transactions between WazirX and Binance can only be done by a user between his/her/its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well [and have been submitted to the ED when requested]. Off-chain withdrawals also cannot happen if the accounts are not KYCed. Law Enforcement Agencies (LEAs) can get complete information about the accounts involved in off-chain transfers,” the corporate added.