India’s Financial Intelligence Unit (FIU) has launched an investigation into the cryptocurrency exchanges WazirX and Binance over transfers allegedly linked to illegal and terrorist activities.
FIU Investigation
According to Money Control, the FIU is collecting data from Binance to identify accounts that may be receiving cryptocurrency in private wallets from Pakistan. These wallets are not linked to any exchange, making them harder to trace. Authorities are concerned that these transfers may be linked to illegal activities or even terrorism financing against India.
WazirX Users Seek Clarity
WazirX users are demanding clear answers from founder Nischal Shetty amid growing concerns over asset transparency and failed restructuring. They have raised six key questions regarding true ownership of user-held crypto, the absence of a Proof of Reserves, and other financial issues.
WazirX's Legal Troubles
Previously, WazirX faced a major setback when Singapore's high court rejected the restructuring plan of its parent company, Zettai, following a hack that resulted in approximately $235 million in losses. The court cited the failure to disclose the creation of an offshore company and the lack of required licenses. WazirX is also entangled in a legal battle over freezing users' funds.
In conclusion, WazirX and Binance are under close scrutiny from Indian authorities, and the future of these exchanges will depend on the outcomes of ongoing investigations and legal proceedings.
