WazirX is an intermediary whose platform was misused: Zanmai Labs on ED’s order

Amidst ongoing clash with Binance and Enforcement Directorate (ED) freezing its bank assets, WazirX’s parent Zanmai Labs on August 9 issued a statement saying that all its users are KYC compliant and WazirX acts like an intermediary who's platform was misused.

“Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity. Our KYC/AML terms and processes are available on the platform publicly. For every transaction, we are able to produce the KYC details of the relevant user. We do not accept any cash transactions. We have fully cooperated with the Enforcement Directorate (ED) for several days and have responded to all their queries fully and transparently,” the startup said in the statement.

“ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users and is unaware about the purpose of their transactions. Zanmai Labs is in the position of any other intermediary whose platform may have been misused,” it added.

ED on August 5 had frozen WazirX’s bank assets worth Rs. 64.67 crores and searched premises of one of the directors of parent company Zanmai Labs. The WazirX’s director was accused of assisting instant loan app companies in money laundering via purchase and transfer of virtual crypto assets.