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Binance CEO Changpeng Zhao (CZ) not too long ago denied claims that Binance owns the Indian crypto alternate WazirX. The assertion got here after India’s Enforcement Directorate (ED) launched an investigation of WazirX over alleged cash laundering on instantaneous mortgage apps and raided the properties of certainly one of its administrators. 

WazirX Beneath Investigation Over Alleged Cash Laundering

India’s ED has launched an investigation into WazirX over alleged cash laundering on instantaneous mortgage apps. WazirX “actively assisted round 16 accused fintech corporations in laundering the proceeds of crime utilizing the crypto route,” the ED stated in a press release final week. 

The Indian company stated that Zanmai Labs, the corporate proudly owning WazirX, has obscured the possession of the crypto platform by way of a “net of agreements.” The alternate additionally reportedly “failed to offer the crypto transactions of the suspect fintech APP corporations and reveal the KYC of the wallets.” 

This led to the ED raiding properties associated to Sameer Mhatre, a director of WazirX, who hasn’t cooperated with authorities. The ED stated that he did not disclose particulars of a transaction in March that concerned the acquisition of cryptocurrencies with proceeds that have been gained from alleged fraud on instantaneous mortgage apps.

“By encouraging obscurity and having lax AML norms, it has actively assisted round 16 accused fintech corporations in laundering the proceeds of crime utilizing the crypto route,” the ED stated. Consequently, the company stated they’ve frozen $8.1 million in funds held by WazirX.

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CZ Denies Claims Binance Owns WazirX

Following the probe, CZ took to Twitter to disclose its relationship with the Indian crypto alternate. “Binance doesn’t personal any fairness in Zanmai Labs, the entity working WazirX and established by the unique founders,” he said, claiming that the transaction for buying WazirX was by no means accomplished. 

“Binance solely gives pockets providers for WazirX as a tech answer. There’s additionally integration utilizing off-chain tx, to save lots of on community charges. WazirX is answerable for all different features of the WazirX alternate, together with consumer sign-up, KYC, buying and selling, and initiating withdrawals.”