The central agency Enforcement Directorate (ED) recently probed WazirX and froze its bank accounts worth Rs 64.67 crore. WazirX was investigated over a money-laundering case involving an amount of Rs 2,790 crore.The crypto exchange platform, co-operated by India-headquartered Zanmai Labs and Cayman Islands-based Binance, has now reacted to the money laundering allegations. Last year, WazirX managed to trade a volume of $43 billion. WazirX (WRX) coin also ranked among the top five currencies.However, with the ongoing cold war between the two owners of Binance and Zanmai Labs on top of the ongoing ED probe, WazirX seems to be suffering enormously. The firm’s trading volume has shrunk by more than 54% in the past five days as secondary research firm CREBACO’s data shows that WazirX’s trading volume dropped from $4.3 million on August 5 to $2 million on August 9.WazirX, India’s biggest crypto exchange with more than 10 million active users, overwhelmed its investors with the price of the coin by dropping more than 9%, as per CREBACO reports.WazirX Reacts to the ED Probe Last week, the Enforcement Directorate reported that it had frozen the WazirX bank assets worth Rs 64.67 Crore, and Zanmai Labs has now come forward to react to it. WazirX claims that it has no affiliation with the users being investigated by the ED and is unaware of their purpose of transactions.Zanmai Labs said in a statement, “For every transaction, we are able to produce the KYC details of the relevant user. We do not accept any cash transactions. We have fully cooperated with the Enforcement Directorate (ED) for several days and have responded to all their queries fully and transparently.”Investors And Users Lose FaithThese latest developments have led to a loss of faith among the users over WazirX’s future. On August 5, Binance said that the company does not own Indian crypto exchange WazirX, raising questions over a deal that was assumed completed in 2019.Binance stated, “As for listing or delisting, we don’t comment on any specific token or coin. At Binance, we periodically review each digital asset we list to ensure that it continues to meet the high level of standard we expect.”Binance’s denial of holding over WazirX has led to multiple investors withdrawing funds. However, the number of accounts shut post the turmoil has not yet been ascertained.As per the reports, Binance’s CEO, CZ, one of the pioneers of the global crypto industry, and WazirX’s co-founder and CEO, Nischal Shetty, have been facing user agitation over the matter.Binance, which had earlier asked users to transfer funds from WazirX to the company, has also removed off-chain transactions.Zanmai Labs, the second contributor of WazirX, stated, “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. For every transaction, we are able to produce the KYC details of the relevant user. We do not accept any cash transactions.”“We have fully cooperated with the Enforcement Directorate for several days and have responded to all their queries fully and transparently.” Binance has stated that it will not be investing in WazirX from now on.Was this writing helpful?