The Enforcement Directorate (ED) has raided a director of Zanmai Lab Pvt Ltd, the parent company of popular cryptocurrency exchange WazirX. The financial investigation agency has also issued an order to freeze his bank balance of Rs 64.47 crore. The ED is probing money laundering against several Indian non-banking financial companies (NBFCs) and their fintech partners for violating RBI norms.
What is the whole matter?
Apart from this, the ED alleges that these companies use telecallers, who misuse personal data and use foul language to charge higher interest rates from loan borrowers. The agency said that many fintech companies backed by Chinese funds were not able to get NBFC licenses from RBI to carry out the business of lending. So he started this work by taking the wrong path.
After the criminal investigation started in the matter, many of these fintech apps closed their shop and diverted the huge profits made. While investigating, the ED came to know that a large amount of funds were diverted by fintech companies to buy crypto assets and keep them illegally abroad. According to the ED, these companies and virtual assets are currently not accessible.
Summons sent to crypto exchanges
The financial investigative agency has also issued summons to crypto exchanges. The ED said that it has been observed that the maximum amount of funds was diverted to WazirX exchange and the crypto assets purchased have been diverted to unknown foreign wallets.
The ED said that the parent company of WazirX crypto exchange Zanmai Labs Pvt Ltd has entered into several agreements with Crowdfire Inc USA, Binance (Cayman Islands), Zettai Pte Ltd Singapore to acquire the ownership of the crypto exchange. Earlier its managing director Nischal Shetty claimed that WazirX is an Indian exchange, which controls all crypto-crypto and rupee-crypto transactions. And it has only one IP and a preferential agreement with Binance.