Binance-owned WazirX is being investigated in India for alleged money laundering of over $350 million

The Indian Ministry of Finance revealed on August 2 that cryptocurrency exchange WazirX is being investigated in two cases for money laundering and violating FX rules.

According to reports, Pankaj Chaudhary, Minister of State for Finance, stated in a written reply to the Parliamentary Upper House that the Directorate of Enforcement is investigating charges that a total of Rs 2,790 crore (about $350 million) was laundered through the cryptocurrency exchange WazirX.

WazirX executives have previously been summoned for questioning.

WazirX, which was acquired by the global exchange Binance in 2019, was reportedly one of the several domestic exchanges which were under the scanner for non-compliance with foreign exchange rules and money laundering guidelines.

In June and again in July that top executives of exchanges, including that of WazirX, were summoned by the economic agency for questioning.

The ministry has now confirmed that the ED is investigating the platform on two cases involving cryptocurrency under the provisions of the Foreign Exchange Management Act, 1999 (FEMA).

In response, he stated in the Rajya Sabha that a Show Cause Notice (SCN) under FEMA regulations had been issued against WazirX for allowing the outside repatriation of cryptocurrency assets worth Rs 2,790 crore (about $350 million) to unidentifiable wallets.