The Enforcement Directorate (ED), on June 11, issued a show cause notice to cryptocurrency exchange WazirX and its directors Nischal Shetty and Sameer Mhatre under the Foreign Exchange Management Act, 1999 (FEMA) for transactions involving cryptocurrencies worth Rs 2,790.74 crore.
ED initiated the FEMA investigation on the basis of an ongoing money laundering probe into Chinese-owned “illegal” online betting applications, the agency said in a statement.
The agency said that accused Chinese nationals had laundered proceeds of crimes worth approximately Rs 57 crore by converting the Indian Rupee deposits into cryptocurrency Tether and then transferred the same to Binance Wallet, an exchange registered in the Cayman Islands, based on instructions received from abroad.
(This is a developing story. Please check back for updates)