The Indian agency is investigating several fintech companies over alleged fraud on instant loan apps, which are apps that make short-term loans.
WazirX "actively assisted around 16 accused fintech companies in laundering the proceeds of crime using the crypto route," the ED said in a press release. As a result, the government has frozen $8.1 million in funds held by WazirX.
Mhatre hasn't cooperated with authorities, the ED said, noting that he failed to disclose details of a transaction in March that involved the purchase of cryptocurrencies with proceeds that were gained from alleged fraud on instant loan apps.
According to the ED, various fintech companies backed by Chinese funds were unable to get authorization from India's central bank and therefore turned to the crypto route.
“Further it has been found that all crypto transactions between these 2 exchanges were not even being recorded on the blockchains and were thus cloaked in mystery. Accordingly, a show cause notice (SCN) has been issued under the provisions of FEMA against WaxirX for allowing outward remittance of crypto assets worth Rs 2,790 crore to unknown wallets.”
Then, today when the exchange is in trouble with the regulators, cz says the acquisition never happened. Can it be possible some intern created that 2021 Tweet and cz didn't realize it? Possible. Not likely. More likely it was using misleading info to make Binance look good so the exchange token jumps!
There's an excellent Discussion post, here on SN, with further info:
India Raids Binance's local exchange WazirX & CZ claims he never bought it! #55151
Here's another article on this development:
All transactions between WazirX and Binance were 'cloaked in mystery': Govt on ED probe https://www.moneycontrol.com/news/business/cryptocurrency/all-transactions-between-wazirx-and-binance-were-cloaked-in-mystery-mos-chaudhary-on-ed-probe-8938741.html https://archive.ph/PLAqN
Haha ...
Indeed, sir. Indeed.
Good luck with that.
This is interesting:
https://twitter.com/cz_binance/status/1555578415901802507 https://nitter.it/cz_binance/status/1555578415901802507
The 2019 press release announcing the acquisition:
Binance Acquires India’s Leading Digital Asset Platform WazirX to Launch Multiple Fiat-to-Crypto Gateways https://www.binance.com/en/blog/all/binance-acquires-indias-leading-digital-asset-platform-wazirx-to-launch-multiple-fiattocrypto-gateways-404105749895733248 https://archive.ph/YyMt2
A 2021 Tweet from cz's Twitter acount:
https://twitter.com/cz_binance/status/1378929716875292676 https://nitter.it/cz_binance/status/1378929716875292676
Then, today when the exchange is in trouble with the regulators, cz says the acquisition never happened. Can it be possible some intern created that 2021 Tweet and cz didn't realize it? Possible. Not likely. More likely it was using misleading info to make Binance look good so the exchange token jumps!
Haha, there's more:
https://twitter.com/NischalShetty/status/1555602963430785024 https://nitter.it/NischalShetty/status/1555602963430785024
Here's an archive of the article. An archive has no paywall, no subscription requirement, and can be easier to read:
Indian Government Raids Director of Crypto Exchange WazirX, Freezes $8.1M https://archive.ph/qBemw