Crypto exchange WazirX is suspected of laundering $350 million

The Indian platform WazirX is now suspected of illegally withdrawing funds from its accounts. The local law enforcement agency is investigating the circumstances. It is believed that the loss could be as much as $350 million.

The basis for the suspicions is WazirX's usage of an offshore subsidiary of Binance in the Cayman Islands. All transactions between the platform and this affiliate are unmarked on the blockchain and have remained anonymous. Such interconnections were systematic.

India's finance minister said that the platform was under scrutiny. It is possible that unknown individuals within its ranks were able to siphon off $350 million. 

Recall that Binance bought the platform in 2019. This acquisition allowed the exchange to enter the Indian market and expand its crypto influence globally. 

In July 2022, cryptocurrency exchanges in India are required by the Enforcement Directorate to report transactions over the past three years. This will check whether the currency control law is being complied with. In addition, cryptocurrency exchanges must show all documents related to their operations.