WazirX, on Friday clarified that Makarand P Adivirkar, who is also known as ‘crypto king’, is not the client of the cryptocurrency exchange after media reports said that he used multiple bitcoin wallets on platforms such as WazirX to facilitate payments for multiple drug dealer networks in India.
According to reports, Narcotics Control Bureau (NCB) had arrested ‘Crypto King’ on Tuesday. Adivirkar is reportedly accused of taking payments from drug dealers in cash and then converting it to bitcoin using the crypto wallets to buy drugs from vendors in the European countries through the dark web.
The cryptocurrency exchange released the statement after #WazirXCaught started trending on Twitter. Many users on the microblogging website blamed the company for not following know your customer (KYC) norms while opening accounts.
“On 11 June 2021, WazirX had received an email from the NCB enquiring about the said accused and his trading activity on WazirX. Upon checking our records, we identified that the accused is not a WazirX user, and we communicated the same to the authorities on 12 June,” the exchange said in a statement.
According to WazirX, it only allows KYC-verified and whitelisted accounts to withdraw funds from our exchange.
“We want to reiterate that WazirX follows global best practices on KYC and anti-money laundering (AML) compliances and has a robust transaction monitoring system in place. We perform a stringent KYC verification of every user to verify their identity as well as perform a secondary KYC verification through linked bank accounts of users before allowing a customer to transact on WazirX,” the exchange’s statement added.
Bitcoin uses peer-to-peer technology to operate with no central authority or banks and managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoins and other forms of cryptocurrencies are often used on the dark web for illicit transactions.
Meanwhile, the utility token of WazirX called WRX was trading lower at $1.50, down by 4.4%, as per CoinGecko.com.
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