Breaking: Indian Crypto Exchange Faces Alleged Investigation Over Money Laundering Charges

Published by
Breaking: Indian Crypto Exchange Faces Alleged Investigation Over Money Laundering Charges

The Enforcement Directorate (ED), an economic intelligence agency responsible for enforcing economic laws in India allegedly issued a show-cause notice to crypto exchange Wazirx along with its directors today, over crypto transactions amounting to Rs 2,790.74 crore ($38.18 million).

ED said the crypto exchange was served the notice under the Foreign Exchange Management Act (FEMA) 1999, for violating money-laundering laws. The notice was in connection with another ongoing investigation into a Chinese-owned “illegal” online betting application.

The ED in its official statement alleged that Chinese nationals converted over $7 million worth of Indian currency into stablecoin Tether and later transferred it to Binance exchange wallets.

The investigation agency further claimed that during the said period, users received over 880 crores ($12M) in the Wazirx wallet from Binance accounts and sent out 1,400 crores ($19.18M) worth of crypto assets to Binance accounts.

“None of these transactions are available on the blockchain for any audit/investigation.”

WazirX is the largest Indian crypto exchange by the number of registered users and trading volume. The platform was acquired by Binance in late 2019.

Advertisement

ED Says WazirX Didn’t Implement Necessary AML Measures

At present Indian crypto exchanges are self-regulated in absence of any formal regulations in place. Thus crypto exchanges are required to implement necessary anti-money laundering guidelines along with strict KYC regulations, but ED claimed Wazirx didn’t follow the basics.

“WazirX does not collect requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines,”

They added,

“It was found that the WazirX clients could transfer ‘valuable’ cryptocurrencies to any person irrespective of its location and nationality without any proper documentation whatsoever, making it a haven for users looking for money laundering/other illegitimate activities,”

The show-cause notice along with the serious accusations of not following AML and CFT guidelines can weaken the case for positive regulations in the country.

[custom-related-posts title=”Related Posts” none_text=”None found” order_by=”title” order=”ASC”]

Advertisement

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025
  • 24/7 Cryptocurrency News

Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility

Pi Network has now added two new features to its Testnet. These are a decentralized…

October 1, 2025
  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025