Indian Exchange WazirX Suspected Of Money Laundering

The Indian authorities are investigating the WazirX cryptocurrency exchange for possible laundering of $350 million, The Economic Times reports, citing Indian Finance Minister Pankaj Chaudhary.

The Indian Economic Intelligence is investigating the crypto exchange. According to Chaudhary, during the investigation, it was found that the WazirX cryptocurrency storage system is completely tied to Binance wallets. In addition, in fact, not a single transaction was recorded between these two exchanges through the blockchain.

Intelligence suspects WazirX of laundering about $350 million in cryptocurrencies through unknown wallets. In addition, the authorities found that WazirX was allowed to convert tokens on behalf of other sites (like Binance and FTX). However, Chaudhary did not provide details of such a scheme.

Previously, WazirX has already come under scrutiny from local authorities. For example, in January 2021, the Indian tax authority established that a cryptocurrency exchange evaded paying taxes totaling almost $5.5 million. As a result of the identified violations, the exchange was fined $6.6 million.

Moreover, in the summer of 2021, WazirX was also accused of money laundering. Then the economic intelligence of India suspected the crypto exchange of complicity in laundering about $7.9 million. Indian rupees were first converted into tether (USDT) and later withdrawn to Binance. Accusations of violations of Indian law began to be actively heard in the media after the exchange was taken over by another trading platform, Binance, in 2019.