Indian Enforcement Directorate Reportedly Investigates Binance in Chinese Money Laundering Case

The Directorate of Enforcement (ED) of India, a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime, is reportedly investigating cryptocurrency exchange Binance in connection with an ongoing Chinese money laundering case that raked in more than $134 million.

The case centers around betting apps run by Chinese operators. They allegedly raked in more than 10 billion rupees over the past 10 months. They were suspected of laundering part of the money through local Indian crypto exchange Wazirx, which was acquired by Binance in 2019.

According to the people who asked not to be identified as the matter is still under investigation, Binance's executives have been summoned by the Enforcement Directorate for questioning.

A Binance spokesperson said the company itself had not been contacted by any authorities in the matter. "We did not receive any summons in June or July of this year. As per available info in the public domain, the summons was directed to only WazirX", the spokesperson said. "We work closely with regulators, law enforcement and industry leaders around the world to further the security and sustainability of the industry while providing the best services and protection to our users."

Fazzaco reported that Binance announced that it would wind down its futures and derivatives products among European countries​. The exchange has already stopped derivatives product offerings in three countries: Germany, Italy and the Netherlands. The move came amid growing pressure on Binance from financial authorities across the world, including Britain, Germany, Hong Kong and Italy.