India’s Financial Intelligence Unit (FIU-IND) is once again looking into cryptocurrency exchange WazirX. It is investigating its possible links to cross-border crypto transactions that may be tied to terror funding. The focus, according to statements given by two senior officials to Moneycontrol, is on crypto moving from Pakistan to private wallets in India, particularly in Jammu and Kashmir.
This investigation is part of a larger effort to uncover how crypto is being used to move money through illegal routes. The main focus is on private wallets—these are crypto wallets where people keep full control of their money and transactions, without any company or platform involved. Platforms like Binance and WazirX let users connect such private wallets to their accounts and use them for transactions.
While Binance has been cooperating with the FIU, officials confirmed that WazirX has also now come under scrutiny. “The FIU is in touch with several crypto exchanges, including WazirX, to investigate cross-border digital currency transactions,” an official said.
WazirX’s spokesperson, however, issued a statement asserting the platform has not permitted any transactions since July 18, 2024. “We have consistently extended full cooperation to law enforcement agencies in all past investigations. We maintain a strict zero-tolerance policy towards any unlawful activity on our platform and remain committed to assisting the authorities,” the spokesperson said, adding that “WazirX is not under any scrutiny.”
That claim, however, has been contradicted by official sources, who insist the exchange is part of the ongoing investigation.
This isn’t the first time that WazirX has come under scrutiny. It was previously named in a serious case filed by the National Investigation Agency (NIA) on January 31, 2023. In that case, Mohammad Mohsin Ahmad, a student operating an account with the exchange, was accused of raising funds for the Islamic State.
The NIA chargesheet revealed that Ahmad used a WazirX account to collect money from over 20 entities, transfer it from his Canara Bank account, and convert it into crypto. Payments were made using TRX to a Syria-based online entity called Ummimmarah, which the agency said was connected to IS activities. Ahmad had opened his WazirX account using his PAN and Aadhaar credentials, which helped investigators track him down.
On July 8, 2025, the Financial Action Task Force (FATF) raised serious concerns about the rising use of crypto platforms and online payments for terror funding.
In its report, FATF pointed to past cases, like the 2019 Pulwama attack and the 2022 Gorakhnath Temple attack, as examples linked to this growing pattern. It also mentioned that items like aluminum powder, used in making explosives, were bought through e-commerce platforms like Amazon.
In August 2024, Binance officially registered with the FIU-IND, following India’s anti-money laundering rules. Prior to this, Binance was blocked from operating in India for seven months. WazirX is now under fresh attention as authorities keep investigating its role in cross-border money transfers.
Just this week, the Ahmedabad Police cracked a crypto scam where over ₹1 crore was sent through wallets linked to Nepal. Binance helped the police trace the transactions, and key suspects were caught. Even though this case wasn’t directly about terror funding, it has added to the government’s worries about crypto being misused for financial crimes.
Echoing similar concerns, crypto whistleblower group Toofaan Army posted on X that they had filed a 72-page affidavit in Singapore Court, mentioning WazirX wallets used in terror funding. Hours later, the FIU confirmed WazirX and Binance are under probe for terror-linked crypto flows from Pakistan to Jammu and Kashmir.
According to sources, the FIU is working on bringing in stricter reporting rules for crypto exchanges under the Prevention of Money Laundering Act. Exchanges may soon have to share more detailed and regular information about accounts and transactions flagged as suspicious.
Meanwhile, WazirX has continued to deny any involvement in such activities; however its name continues to be associated with official investigations. From the NIA chargesheet back in early 2023 to the new FIU probe in 2025, questions around WazirX just aren’t settling down.
Also Read: Is the WazirX Hack a Lie? Users’ Question Official Story
