10 crypto exchanges with China link under ED lens for alleged laundering over Rs 1,000 crore: Report

The Enforcement Directorate (ED) is probing over ten cryptocurrency exchanges for allegedly laundering more than Rs 1,000 crore by assisting some China-based instant loan app companies through the purchase and transfer of virtual crypto assets, The Economic Times reported on August 11, citing people familiar with the development.

According to the report, the probe has unearthed instances of accused firms approaching the exchanges to buy crypto coins for more than Rs 100 crore and crypto coins being sent to international wallets.

The exchanges did not conduct any enhanced due diligence and even failed to raise suspicious transaction reports (STRs), it noted.

The federal agency is expected to question officials of the crypto exchanges under investigation again next week, the report said.

Last week, the agency said it has frozen bank deposits of Rs 64.67 crore as part of a money laundering probe against cryptocurrency exchange WazirX.

The agency conducted raids against a director of Zanmai Lab Pvt. Ltd., which owns WazirX, on August 3 in Hyderabad and alleged he was “non-cooperative”.

The agency had charged WazirX last year for alleged contravention of the Foreign Exchange Management Act (FEMA).