The Enforcement Directorate(ED) is believed to be investigating crypto exchange Binance’s role in an ongoing investigation involving betting apps. According to the report, The Enforcement Directorate(ED) has summoned the Binance executive for questioning and is awaiting a response.
The questioning request is in connection with an ongoing probe against betting apps run by Chinese operators. Over the past ten months, operators collected more than $134 million for allegedly laundering part of the money through the Wazirx cryptocurrency exchange. Binance acquired WazirX in 2019.
Binance has been facing regulatory crackdown as nations intensify scrutiny of the crypto industry.
“The Chinese operators of the apps involved in ED’s laundering probe used wallets with WazirX for buying, converting and transferring money to wallets on Binance’s platform,” according to Bloomberg.com.
The ED has already issued a show-notice to Wazrix. No official statement has been published in the matter yet. ED had also noted that Binance did not collect any KYC documents from clients in most of the transactions. The exchange also didn’t collect information detailed by global anti-money laundering watchdog the Financial Action Task Force(FATF) for virtual currencies.