The Enforcement Directorate (ED) has issued a show-cause notice to the country's largest cryptocurrency exchange. The notice has been issued to the exchange for alleged violation of the Foreign Exchange Management Act (FEMA) in transactions worth Rs 2,790 crore. This exchange WazirX was established in December 2017 by the company Janmai Labs Pvt Ltd. took place under. It was founded as a domestic cryptocurrency startup.
Directors of the exchange Nischal Sethi and Hanuman Mhatre have also been named in the notice issued by the central probe agency after investigation. The ED said that it came to know about this transaction of the company during its money laundering probe related to an illegal online betting app owned by a Chinese national.
The ED said that this show cause notice is in respect of transactions worth Rs 2,790.74 crore. The Enforcement Directorate said that the investigation revealed the fact that Chinese citizens had committed money laundering to the tune of Rs 57 crore by converting Indian Rupee deposits into cryptocurrency Tether (USDT). Later transferred to Binance (registered exchange in the Cayman Islands) wallet.