Cryptocurrency exchange WazirX blocked over 2,431 accounts in past six months

Cryptocurrency exchange WazirX blocked over 2,431 accounts before verifying transactions deemed unlawful from October 2022 to March 2023.

The company said in its biannual transparency report that it had engaged in over 3,96,126 user interactions during this period.

“This report covers an overview of initiatives the company took during the months of October 2022 to March 2023 to safeguard users in the virtual digital asset (VDA) ecosystem,” WazirX said.

It added, “It also includes details on requests for user data, content, and account restrictions by Indian and foreign law enforcement agencies.”

This comes at a time when the finance ministry has moved exchanges, custodians, and wallet providers, among others, in crypto-related trade under the Prevention of Money Laundering Act.

Crypto exchange WazirX posts Rs 823 Cr revenue in FY22

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Crypto exchange WazirX posts Rs 823 Cr revenue in FY22

During October-March, law enforcement agencies (LEA) received 431 requests— 46 from foreign LEAs and 385 from Indian LEAs—against a total transaction volume of $390 million on the platform.

All these requests pertained to matters related to account blocking, suspected criminal proceedings, and investigation, and they sought information from WazirX as to whether such accused had dealt in crypto through its platform. 

“WazirX promptly provided all information as sought, and our compliance rate in record timeliness and accuracy was 100%. Besides, blocking of over 2,431 accounts was initiated based on our internal transaction monitoring process and/or directives from the LEAs,” it said in the report.

As per the report, WazirX worked with the National Investigation Agency, Enforcement Directorate, State Cyber Crime Cells, Odisha Vigilance Department, Special Task Force, Bhopal Police, West Bengal Police, Maharashtra Police, Crime Branch, Toronto Police Department, Police Department Dortmund, New York County District Attorney, Burlington Police, California Police Department, Florida Police, etc. 

WazirX is an India-based crypto exchange platform that allows users to buy, sell, and trade various crypto assets like Bitcoin, Ether, Litecoin, and more. It claims to have over 15 million users.