India’s federal agency ED froze Crypto Exchange Vauld’s assets worth $4.6 million
India’s Enforcement Directorate (ED) froze assets of $46 million belonging to Vauld, which is a cryptocurrency exchange. In Vauld’s press release, the company stated that it disagreed with the allegations made by ED about Vauld’s KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures.
These assets seized by the ED were found stored in bank accounts, payment gateway balances and wallets also on Flipvolt’s crypto exchange. The $46 million was linked to the case of instant loan apps. Flipvolt is the Indian wing of the Singaporean exchange Vauld.
The crypto lender has mentioned that the ED had given a green signal to freeze the assets despite full cooperation, in accordance with the statement released recently,
We, like several other players offering crypto services in India, had received summons from the Enforcement Directorate, Hyderabad, India in the month of July 2022, seeking certain information/documents. In accordance with the subpoena, we fully cooperated with the Enforcement Directorate and provided all necessary information/documents.
After WazirX, ED inspects Crypto Lender Valuld in relation to money laundering
The ED had conducted searches at several premises of Yellow Tune Technologies Private Limited in Bangalore, following which it issued an order to freeze Vauld’s bank balance. While conducting the investigation, the ED had discovered funds of close to $46 million (INR 370 Crore) being deposited.
This deposit happened through 23 entities which included the accused NBFCs and also their fintech firms, the amount was deposited in the INR wallet of Yellow Tune Technologies Pvt Ltd with Crypto Exchange Flipvolt Technologies Pvt Ltd.
According to India’s federal agency, the frozen money is the proceeds of crime stemming from illegal lending practices. The Enforcement Directorate has carried out these raids in several premises.
These premises belong to the Bengaluru-based Yellow Tune Technologies, the raids were conducted in connection with the investigation regarding the entities suspected of engaging in fraudulent practices through instant loan apps. The investigation has not stopped yet and further investigation can still be expected.
What India’s federal agency says about the crypto lender
The ED has further talked about this investigation and mentioned that as many as 23 NBFCs (Nonbank Financial Companies) along with fintech firms will transfer the funds worth $46 million to the INR wallets of Yellow Tune, which is Vauld’s Indian arm.
Furthermore, the ED mentioned,
…equivalent movable assets to the extent of INR 367.67 Crore held by Flipvolt crypto exchange in the form of bank and payment gateway balances worth INR 164.4 Cr and crypto assets held in their pool accounts worth INR 203.26 Cr are frozen under PMLA (Prevention of Money Laundering Act), 2002, until complete fund trace is provided by the crypto exchange
