The Indian Law Enforcement Agency (ED), which is responsible for fighting white-collar crime in the country, issued a notice to WazirX, a Mumbai-based cryptocurrency exchange.
The notice was sent to WazirX under the Foreign Exchange Management Act (FEMA) of 1999 for cryptocurrency transactions worth 27.91 billion rupees ($382 million), the agency tweeted on Friday.
According to The Times of India, directors Nischal Shetty and Hanuam Mhatre are named in the notice along with the company.
The publication quoted the ED statement that the FEMA investigation was initiated on the basis of an investigation into money laundering an illegal online betting application owned by China.
“In the course of the investigation, it was found that the Chinese national accused of laundering proceeds of crime worth approximately 57 kroner by converting the INR deposit into cryptocurrency (USDT) and then transferring it to a Binance (Cayman Islands) portfolio overseas,” the statement said.
During the investigation period, WazirX received cryptocurrencies worth 8.8 billion rupees (US$120 million) from the Binance account and transferred cryptocurrency worth 14 billion rupees (191 million US dollars) to the Binance account, it said in the declaration.
While Indian media covered ED’s testimony, WazirX denied being briefed by the agency on the reasons for the show.
“As mentioned in today’s media reports, WazirX has not received any important notification from the Enforcement Directorate.”
“WazirX is yet to receive any show-cause notice from the Enforcement Directorate as mentioned in today’s media reports. WazirX is in compliance with all applicable laws. We go beyond our legal obligations by following Know Your Customer (KYC) and Anti Money Laundering (AML) processes and have always provided information to law enforcement authorities whenever required. We are able to trace all users on our platform with official identity information. Should we receive a formal communication or notice from the ED, we’ll fully cooperate in the investigation.”CEO- WazirX