New Delhi, Aug 5: The Enforcement Directorate (ED) on Friday said it has frozen bank deposits of Rs 64.67 crore as part of a money laundering probe against crypto currency exchange WazirX.
The federal agency said it 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's probe against the crypto exchange is linked to its ongoing investigation against a number of Chinese loan apps (mobile applications) working in India.
The agency had charged WazirX last year for alleged contravention of the Foreign Exchange Management Act (FEMA).
"It was found that Sameer Mhatre, Director WazirX, has complete remote access to the database of WazirX, but despite that he is not providing the details of the transactions relating to the crypto assets, purchased from the proceeds of crime of instant loan app fraud."
"The lax KYC norms, loose regulatory control of transactions between WazirX and Binance, non-recording of transactions on block chains to save costs and non-recording of the KYC of the opposite wallets has ensured that WazirX is not able to give any account for the missing crypto assets," the ED alleged in a statement.
It said the company made no efforts to trace these crypto assets.
"By encouraging obscurity and having lax AML (anti-money laundering) norms, it has actively assisted around 16 accused fintech companies in laundering the proceeds of crime using the crypto route," it said.
Therefore, the ED said, equivalent movable assets to the extent of Rs 64.67 crore lying with WazirX were frozen under the Prevention of Money Laundering Act (PMLA).
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United Nations (PTI): A spokesperson for UN Secretary-General Antonio Guterres has said the world body "hopes" that in India and any country that is having elections, people's "political and civil rights" are "protected" and everyone is able to vote in a "free and fair" atmosphere.
Spokesperson for the Secretary-General Stephane Dujarric made these remarks on Thursday while he was responding to a question on the "political unrest" in India ahead of the upcoming national elections in the wake of the arrest of Delhi Chief Minister Arvind Kejriwal and the freezing of the opposition Congress Party's bank accounts.
"What we very much hope that in India, as in any country that is having elections, that everyone's rights are protected, including political and civil rights, and everyone is able to vote in an atmosphere that is free and fair," Dujarric said at the daily press briefing Thursday.
The response from the United Nations comes a day after the US also reacted to a similar question on Kejriwal's arrest and freezing of the Congress party's bank accounts.
On Wednesday, hours after India summoned a senior US diplomat to protest remarks on Kejriwal's arrest, Washington reiterated that it encourages fair, transparent, timely legal processes.
On the US diplomat being summoned in Delhi, US State Department Spokesperson Matthew Miller said "I'm not going to talk about any private diplomatic conversations. But of course what we have said publicly is what I just said from here, that we encourage fair, transparent, timely legal processes. We don't think anyone should object to that, and we'll make the same thing clear privately."
Ministry of External Affairs (MEA) officials summoned Acting Deputy Chief of Mission Gloria Berbena to their office in South Block in the Indian capital. The meeting lasted for more than 30 minutes.
On Thursday, India said the US State Department's recent remarks on the arrest of Delhi Chief Minister Arvind Kejriwal are "unwarranted" and asserted the country is "proud of its independent and robust democratic institutions" and committed to protect them from any form of undue external influences.
Any "external imputation" on India's electoral and legal processes is "completely unacceptable", MEA Spokesperson Randhir Jaiswal said in New Delhi during his weekly press briefing.
In India, legal processes are driven "only by the rule of law", Jaiswal said on Thursday.
Earlier on Wednesday, the Ministry of External Affairs (MEA) had said in a statement that India took strong objection to the remarks of the Spokesperson of the US State Department about certain legal proceedings in India.
"India's legal processes are based on an independent judiciary which is committed to objective and timely outcomes. Casting aspersions on that is unwarranted," the MEA had said.
The Enforcement Directorate has arrested Kejriwal in a money laundering case linked to the excise policy 'scam'.
The case pertains to alleged corruption and money laundering in formulating and executing the Delhi government's excise policy for 2021-22 which was later scrapped.