Loan Enforcement Case: ED Freezes Rs 100 Crore Crypto Assets in WazirX | Hyderabad News

Hyderabad: The Directorate of Law Enforcement (ED), Hyderabad has frozen over Rs 100 crore lying in a cryptocurrency exchange in connection with the loan enforcement case. He also unraveled the lending app companies’ modus operandi of embezzling millions of rupees by buying cryptocurrency from WazirX, a bitcoin and cryptocurrency exchange, to avoid ED attachment. .
“When the police and ED started the crackdown, lending app companies used the cryptocurrency route to get money out of the country. Most of the money is transferred to Hong Kong via crypto assets via WazirX. We have found evidence regarding the transfer of money to crypto assets. . We have frozen over Rs 100 crore of crypto assets from WazirX,” ED said.
Most cloud-based data, agency says
ED would have sought out the director of WazirX Sameer Mhatre in Bombay, while Nischal Shetty, another director, would be in the United Arab Emirates. “The searches are meaningless because most of the data is in the cloud and employees are working from home,” the agency said. ED, Hyderabad, has previously issued notices of Rs 2,790 crore crypto transactions under FEMA breaches in the WazirX case. WazirX, operated by Zanmai Labs Private Limitedused the fortified infrastructure of the Cayman Islands-based exchange Binance.
MoS Finance, Pankaj Chaudhary, briefing RS recently, said, “Crypto transactions between these two exchanges were not even recorded on the blockchains and were therefore shrouded in mystery. A show cause notice was issued under FEMA provisions against WazirX for allowing outward transfer of crypto assets worth Rs 2,790 crore to unknown wallets.” “In a separate case, it is noticed that WazirX allowed the request of foreign users to convert one crypto to another on its own platform as well as using transfer from third-party exchanges, namely – FTXBinance,” he added.

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