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Every Press release Binance, a cryptocurrency exchange from India’s Directorate of Enforcement (ED), was allegedly involved in a money laundering scheme created by WazirX.The entity operates as a crypto exchange platform in the country; one of its offices was raided on August 3rdas a result of an ongoing investigation.

Binance CEO Changpeng Zhao reject The company has no financial ties to WazirX, and it does not own any equity in Zanmai Labs, the allegation said. The latter is the parent company of WazirX and one of the main players in the money laundering scheme, according to a release from Indian authorities.

As a result of the raid, local authorities froze more than $8 million or 64.67 Indian crore (INR) from bank balances linked to WazirX. The ED alleges that many companies allegedly operate lending businesses without a license by transferring funds in the form of cryptocurrencies to WazirX.

The funds were allegedly used for money laundering in a scheme involving “unknown foreign wallets” and virtual fintech companies. This version claims:

ED is conducting money laundering investigations into some Indian NBFC (Non-Banking Financial Company) companies and their fintech partners for breaching RBI guidelines and using phone calls abusing personal data and abusive language to extort high-value predatory lending practices . Lender’s interest rate.

The investigation led authorities to question Nischal Shetty, the managing director of Zanmain Labs, which allegedly controls WazirX. The executive claimed that Binance handles most of the transactions for WazirX.

Authorities believe the suspect has been providing “contradictory and ambiguous answers” to cover up the investigation. Additionally, the ED believes that cryptocurrency trading platforms fail to implement robust know-your-customer (KYC) and anti-money laundering (AML) policies.

Was Binance involved in this alleged money laundering scheme?

In addition, authorities said the parties had gone to great lengths to hide the transaction. The ED also asked Sameer Mhatre, the director of WazirX, but was unable to gather further information on the transactions related to the trading platform. The release adds:

Lax KYC norms, loose regulation of transactions between WazirX and Binance, not recording transactions on the blockchain to save costs, and KYC not recording counterparty wallets ensure that WazirX cannot provide any account for missing crypto assets. (…) By encouraging obscurity and lax anti-money laundering norms, it actively assists some 16 accused fintech companies in laundering the proceeds of crime using the crypto route.

The CEO of Binance clarified that the exchange announced a deal to acquire WazirX, but the deal “never closed.” The executive stated that their platform “only provides wallet services,” noting that all responsibility for running the platform rests with WazirX.

Zhao admitted the allegations against WazirX were “worrisome” and claimed they were constantly working with “law enforcement agencies around the world” and providing assistance to the Education Department and Indian authorities.

The latter said they tried to pass their [email protected] contact, but the company “rarely responds to inquiries”.

At the time of writing, BNB is trading at $313, up slightly on the 4-hours chart.

The price of BNB edged higher on the 4-hours chart. resource: BNBUSDT transaction view

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