Enforcement Directorate (ED), the primary enforcement institution for economic matters in India, has frozen $8.14 million worth of assets sitting on the WazirX crypto exchange.
India’s largest crypto exchange is accused of breaking government regulations and supporting money laundering on its platform. Moreover, Nischal Shetty, the managing director at WazirX, has allegedly failed to cooperate with the investigating authorities.
Binance, one of the world’s largest crypto exchanges, bought WazirX in 2019 for some $10 million and is also part of the issue. According to ED, transactions between Binance and WazirX have been poorly controlled and not in line with the prescribed regulations.
However, despite the legal issues, tokens created by both exchanges, BNB and WRX, have not suffered a drop in value.
WazirX has already encountered trouble with the ED in 2021. It was then suspected of breaking the rules of the Foreign Exchange Management Act, involving Chinese citizens trading on WazirX’s platform.