10 crypto exchanges under ED scanner for laundering over Rs 1,000 Cr
After WazirX was accused earlier this month, another 9 crypto exchanges have come under the ED scanner for allegedly helping bad actors launder over Rs 1,000 crore out of India.
The Enforcement Directorate (ED) is investigating 10 different cryptocurrency exchanges in India for allegedly allowing bad actors to launder over Rs 1,000 crore out of the country. The exchanges are being investigated for their lax oversight practices that allowed these transactions without a red flag.
Reported by The Economic Times, the investigation comes under the instant loan app case, with most having links to China. The probe has already unearthed instances of entities transferring over Rs 100 crore in a single fiat-to-crypto transaction, with the ensuing tokens being transferred to wallets controlled outside India.
If true, the exchanges would be culpable for not conducting enhanced due diligence, and even failing to raise suspicious transactions reports (STRs) for the government to look into at the time of the transactions. The ED is expected to further question the relevant individuals at the exchanges next week.
So far, the agency has already frozen the accounts of . Additionally, it is said to be closely monitoring the public argument over ownership between WazirX CEO Nischal Shetty and Binance. Both sides have been claiming different ownership structures that places the onus on the other side ever since it became clear that the ED was investigating the company for its anti-money laundering practices.
Edited by Megha Reddy