The Financial Crimes Enforcement Agency of India has announced the freezing of assets of WazirX owned by Binance, which is suspected of violating currency legislation.
The Federal Law Enforcement Administration (ED) reported that the assets of the exchange in the amount of 646.70 million rupees ($8.16 million) were frozen.
At the moment, an investigation is underway into the possible role of the crypto exchange. Namely, providing assistance to companies supplying instant loans, laundering criminal proceeds by converting them into cryptocurrencies on the platform.
Checks on WazirX, owned since 2019 by Binance, began last year.
At that time, ED was investigating a money laundering case involving illegal online betting apps owned by China. During the investigation, it was found that the laundered proceeds from illegal activities in the amount of about 570 million rupees were converted into cryptocurrencies using the Binance platform, representatives of ED reported.