India’s FIU Probes Binance and WazirX Over Suspicious Crypto Transactions

The post India’s FIU Probes Binance and WazirX Over Suspicious Crypto Transactions appeared first on Coinpedia Fintech News

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 in 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.

BREAKING: Just hours after I filed a 72-page affidavit in Singapore Court,also citing #WazirX wallets being used in terror funding

The Financial Intelligence Unit (FIU) confirms WazirX+ #Binance are under probe for terror-linked crypto flows from Pakistan to Jammu & Kashmir pic.twitter.com/bIryL7Rgc4

— TOOFAAN (@TOOFAANARMY) July 11, 2025

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.

WE WAZIRX USERS DEMAND ANSWERS, WHY IS NISCHAL SHETTY HIDING ??

In light of ongoing legal scrutiny and high public interest surrounding the WazirX restructuring process, we are seeking your formal responses to the following key questions. These concern issues of asset… pic.twitter.com/1EEKYdd9ya

— Justice for WazirX Users (@WazirXUsers) July 10, 2025

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

What happened to WazirX?

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.

Will I get my money back from WazirX?

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.

What will happen to WazirX now?

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.

India’s FIU Probes Binance and WazirX Over Suspicious Crypto Transactions

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