In accordance with the PMLA, the Enforcement Directorate on Wednesday froze bank assets with WazirX totaling Rs 64.67. With regard to “predatory lending practises in violation of the Reserve Bank of India guidelines and by using tele-callers who misuse personal data and use abusive language to extort high interest rates from the loan takers,” the ED is conducting a laundering investigation against numerous Indian NBFC companies and their fintech partners.
ED claimed that since the inquiry got underway, it has discovered that fintech firms had diverted a sizable sum of money to buy cryptocurrency assets and launder it abroad. According to the enforcement agency, the maximum amount of money was transferred to the WazirX exchange, and the cryptocurrency assets that were bought were transferred to international wallets.
ED also discovered that Zanmai Labs, the company that owns WazirX, set up a web of contracts with other organisations, including Zettai in Singapore and Crowdfire, which was founded by Nischal Shetty.