It comes as a huge relief for the entire WazirX community in India that the Enforcement Directorate of India (ED) has unfrozen the exchange’s bank accounts.
Funds Unfrozen for WazirX
WazirX, the largest cryptocurrency exchange in India has recently released a public statement making an announcement about its frozen funds.
The exchange officials have confirmed that their bank accounts are free and they will be able to use them as normal. The bank accounts for the exchange were unfrozen following the order from the ED.
The officials released the public statement on September 12 surrounding the release of their bank accounts.
WazirX Cooperated with the ED throughout the Investigations
A few weeks back, the Indian Enforcement Directorate announced they had frozen the bank accounts belonging to WazirX.
The regulatory authority was investigating the exchange’s status surrounding anti-money laundering (AML). It was confirmed that the bank accounts of WazirX would remain frozen until the investigation was complete.
The executives at WazirX had announced that they would provide full support and cooperation to the investigation teams at the ED.
In order to expedite the investigation, WazirX promised full cooperation and provisioning of the necessary documents. WazirX was not the only exchange that the officials at the ED had under investigation.
It was revealed that the regulatory authority would target 16 fintech firms and WazirX would be one of them. In addition to fintech firms, the regulatory authority had also launched its investigation against other instant loan applications.
The instant loan applications under investigation are the ones that had solicited services after acquiring them from the cryptocurrency exchanges.
WazirX’s Strong Stance
The exchange officials stated that they are strictly against illegal activities that take place through their platform.
They have zero tolerance towards such activities and for this purpose, they announced that they would provide full cooperation to the ED.
This is not the first time WazirX came under investigation by the ED. Ever since its foundation in 2017, the India-based exchange has undergone multiple investigations.
The most extensive investigations at the exchange were carried out by the ED back in 2020 and 2021. In the past couple of years, the ED has investigated the trading activities of multiple suspicious individuals and businesses.
After confirming the illicit activities of the suspicious targets, their accounts were banned on WazirX and they had to go through legal proceedings.
WazirX is Back in Business
As the ED launched its recent investigation, it froze the exchange’s bank accounts with $8.1 million in funds in holdings.
Due to the funds being frozen, the exchange’s business was moving towards its demise. Finally, with funds being unfrozen, the exchange will be able to operate as normal and its dormant users will return to trade as normal.