Binance CEO Changpeng Zhao on Saturday said that those who have funds on WazirX should transfer their funds to Binance. “If you have funds on WazirX, you should transfer it to Binance. Simple as that. We could disable WazirX wallets on a tech level, but we can’t/won’t do that. And as much debates as we are enduring, we can’t/won’t hurt users,” Binance CEO Changpeng Zhao shared on Twitter.
This development comes following the Enforcement Directorate (ED) on Friday notifying that it had frozen the assets of WazirX, linked to the world’s largest digital currency exchange Binance, as part of its investigation into suspected violation of foreign exchange regulations, according to Reuters.
The ED said that it froze assets worth ₹646.70 million. “We have been fully cooperating with the Enforcement Directorate for several days and have responded to all their queries fully and transparently,” said a spokesperson for WazirX, which is among the largest virtual currency exchanges in India, the Reuters report said. “We do not agree with the allegations in the ED press release. We are evaluating our further plan of action,” it said.
Additionally, the ED has said its action was related to the investigation into the crypto exchange’s suspected role in assisting instant loan app companies in laundering the proceeds of crime by converting them into cryptocurrencies on its platform and the searches were conducted on one of the directors of Zanmai Lab, which owns WazirX, the report said. The ED said that it was conducting money-laundering investigations against several shadow banks and their fintech companies for violation of central bank norms and indulging in predatory lending practices, as per the report.
According to the Reuters report citing an official release by ED, it said, “while doing fund trail investigation, ED found that large amounts of funds were diverted by the fintech companies to purchase crypto assets and then launder them abroad … maximum amount of funds were diverted to WazirX exchange and the crypto assets so purchases have been diverted to unknown foreign wallets.”
(With inputs from Reuters)
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