The co-operator of crypto exchange WazirX, Zanmai Labs, said it has no affiliation with users who are the subject of an Enforcement Directorate’s (ED) investigation for transactions they carried out on the exchange. This comes a day after Binance stopped off-chain transactions from WazirX.
“ED appears to be investigating the transactions of certain users and Zanmai Labs has no affiliation to such users, and is unaware of the purpose of their transactions. Zanmai Labs is in the position of any other intermediary, whose platform may have been misused,” it said in a statement.
The entity said it has a no-tolerance policy towards any illegal activities using WazirX. The exchange is compliant with KYC law, it said.
“Users agree in the User Agreement to use WazirX in accordance with applicable law. Users are signed up on WazirX only after they complete the KYC process, including submitting proof of address and identity. Our KYC/ AML terms and processes are available on the platform publicly.”
It also said it would be able to produce the KYC details of the relevant users for every transaction and it does not accept cash transactions.
ED had said it hadconducted searches on one of the directors of Zanmai Labs and had issued a freezing order on its bank accounts. The exchange has been accused of helping 16 fintech companies to divert their alleged proceeds of crime using the crypto route.
Zanmai Labs, however, said it has been cooperating in the investigation. “We have fully cooperated with the Enforcement Directorate (ED) for several days and have responded to all their queries fully and transparently,” it said.
Off-chain transactions
Zanmai Labs said off-chain withdrawals on its platforms are not processed in the absence of valid KYC (know your customer) documents.
“There seems to be a major misunderstanding about off-chain transactions between WazirX and Binance. Such transactionscan only be done by a user between his/ her/ its own account on the two platforms. Hence, KYC details are available for all off-chain transfers as well [and have been submitted to the ED when requested].”
Published on
August 10, 2022
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