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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jul 11, 2025 10:01 UTC
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India’s FIU Probes Binance and WazirX Over Suspicious Crypto Transactions
India’s FIU is probing Binance and WazirX over crypto transfers from Pakistan linked to suspected terror financing and illegal activity.
WazirX faces mounting legal heat as users demand answers on asset ownership, transparency, and ₹1,284 crore in questionable transfers.
WazirX and Binance are in trouble as India’s FIU looks into crypto transfers from Pakistan. Authorities are now tracking wallet transactions that may be linked to illegal or terror-related activities.
India Probes Binance, WazirX Over Crypto Transfers Linked to Pakistan
As reported by Money Control, officials stated that FIU is collecting data from Binance to identify accounts that may be receiving cryptocurrency in private wallets from Pakistan. These wallets are not tied to any exchange, which is making it harder to trace them. Authorities are concerned that such transfers may be linked to illegal activities or even terror financing against India.
Both Binance and WazirX are being investigated, as they are often used for cross-border crypto transfers. Officials have noticed a rise in crypto transactions between Jammu & Kashmir and Pakistan border areas, and they suspect that some of these may be linked to terror funding.
Ironically, this comes after WazirX issued a PR piece defending why its parent firm, Zettai, does not need FIU-IND registration. Now, that very regulator is investigating them for serious cross-border risks. All eyes are on the July 15 Singapore court hearing, as the outcome could decide the future of WazirX and the fate of user-held crypto.
Recently, Romy Johnson filed a 72-page affidavit in the Singapore High Court that could decide whether WazirX users legally own their crypto. The filing claims WazirX wallets were linked to ISIS-related activity through TRX token transfers to a Syria-based entity.
Users Demand Transparency
WazirX users are now demanding clear answers from founder Nischal Shetty amid growing concerns over the failed restructuring and asset transparency. They have raised six key questions that remain unanswered.
The issues include the true ownership of user-held crypto, the absence of a Proof of Reserves, undisclosed multisig wallet signatories, ₹364 crore in related-party transfers to entities linked to Shetty, and ₹920 crore in unaccounted revenue. Users are calling for clear, verifiable responses.
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WazirX Faces Legal Heat
Previously, WazirX suffered a major blow as Singapore’s high court rejected the restructuring plan of its parent company, Zettai, after the $235 million hack. The court cited Zettai’s failure to disclose the creation of a Panama-based subsidiary and its decision not to get the required licenses from Sinagore and India.
WazirX is also facing a legal battle for freezing users’ unhacked crypto and fiat funds. A key affidavit by Romy Johnson claims that Zettai wrongly grouped user-owned assets with hacked ones to push a flawed restructuring plan and violated trust laws.
With a court hearing nearing, this case could shape how crypto platforms treat customer funds in the future.
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FAQs
WazirX experienced a major hack on July 18, 2024, resulting in the loss of approximately $235 million (around ₹2,000 crore) in user funds. The exchange ceased operations on that date and its parent company, Zettai, is now undergoing a complex legal battle and restructuring process in Singapore.
WazirX is attempting a recovery plan, but it’s uncertain when and how much users will get back. A first round of payments was expected by May 2025, but delays have occurred. Users may receive “tradable recovery tokens” and further distributions over 2-3 years, subject to court approval and WazirX’s recovery.
WazirX’s future hinges on the ongoing legal proceedings in Singapore, particularly the July 15, 2025 court hearing. Its restructuring plan has faced setbacks, and the exchange is currently under intense scrutiny from Indian regulators (FIU) regarding its operations and alleged links to illicit activities.
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