The assets of cryptocurrency exchange platform WazirX bank worth Rs 64.67 crore were frozen after the Enforcement Directorate conducted searches on Friday. The searches were conducted in connection with a case in which the crypto exchange platform aided accused instant loan app companies in money laundering through the purchase and transfer of virtual crypto assets.
The investigation into the crypto exchange is linked to the agency’s ongoing investigation into a number of Chinese loan apps (mobile applications) operating in India. ED also stated that after the criminal investigation began, many of these fintech apps shut down and diverted the huge profits earned using the aforementioned method. “ED discovered that large amounts of funds were diverted by fintech companies to purchase crypto assets and then launder them abroad while conducting fund trail investigations. These companies and virtual assets are currently untraceable.”