Binance’s never-ending headaches continue.
This time, Indian authorities are investigating a money-laundering operation that allegedly occurred on the WazirX platform.
WazirX is the largest crypto exchange in India and also a subsidiary of Binance. Indian authorities want to know if WazirX has any involvement in the money laundering transactions initiated by Chinese betting apps (which operates in India).
Laundering a part of their earnings
According to the Enforcement Directorate (ED), there is a high possibility that Chinese betting apps have earned $134 million in the last 10 months.
ED said that these apps have used the WazirX exchange platform to launder part of their earnings. In a report released by Bloomberg, it said the economic intelligence agency has already notified Binance to respond about this incident.
Responding to the Bloomberg report, Binance said: “We did not receive any summons in June or July of this year. As per available info, in the public domain, the summons was directed only to WazirX.”
Humble beginnings
WazirX was originally founded by Nischal Shetty, a techpreneur, with co-founders Sameer Mhatre and Siddharth Menon in 2018.
The company has achieved tremendous success in India that Binance decided to acquire the crypto exchange platform.
But even with WazirX’s almost non-stop success, strong foundation, and Binance’s large war chest, it is also feeling the friction with regulatory authorities in India.
Last June, Indian authorities demanded an explanation from WazirX about the $38 million transactions that flowed through its platform, which allegedly came from illegal forex activities.
The Enforcement Directorate said that with WazirX’s lack of initiative to require proper documentation on crypto transfers, it has become an ideal platform for illegal activities to occur.
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