ED probes P2P deals, liquidity at WazirX

The Enforcement Directorate (ED) is looking into questionable peer-to-peer (P2P) transactions, inflated liquidity shown in key documents and lax know-your-customer (KYC) protocols at WazirX and a few other cryptocurrency exchanges, two people aware of the development said.

Investigators suspect there was no mechanism or procedure to ensure only Indians traded crypto assets. That increased counter-party risk and provided a loophole for criminals, they said.