India’s Enforcement Directorate (ED) has frozen about $46.5 million belonging to a local subsidiary of Vauld, Flipvolt Technology. The agency confirmed the development in an August 12 statement relayed on its handle. According to ED, it is probing Vauld and its subsidiary over allegations of money laundering. Similarly, the amount frozen by the agency amounts to over 3.70 billion Indian rupees.
Reportedly, India’s enforcement directorate (ED) accused Vauld’s subsidiary, Flipvolt Technologies, and Yellow Tune Technologies of aiding illicit transfers through the crypto exchange. Additionally, the regulator submitted that over 20 firms that are currently being probed stored illicit funds, amounting to 3.70 billion rupees into the Yellow Tune’s crypto wallet. The funds were later migrated to foreign wallet addresses in a manner that violates due processes. This, according to the agency, necessitated its decision to trail the architects.
Notably, the enforcement directorate indicted the exchange of complicity in its handling of the case. According to ED, the exchange failed to cooperate in the ongoing investigation. It reportedly decided not to provide the agency with the necessary KYC details of the wallets. More so, the exchange failed to account for crypto transactions made by Yellow Tune.
This development, according to ED, has compelled its decision to freeze the asset of the the Indian exchange owned by Vauld. Notably, the exchange will forfeit the laundered amount until it provides detailed information in defense of the accusations leveled against it.
India’s Enforcement Directorate probing Fintech firms
Worth noting that India’s Enforcement Directorate (ED) began probing the operations and compliance of numerous Fintech companies. Its motive was to prosecute firms violating the Reserve Bank of India guidelines. Reportedly, its investigation fingered several defaulting fintech firms.
Recall that the enforcement directorate also froze the assets of WazirX, an Indian crypto exchange. As revealed, ED accused the exchange of violating foreign exchange regulations. It reportedly aided some instant loan ventures to launder illicit proceeds by converting the funds into cryptocurrency on its network. The asset frozen from the exchange worth over 646.70 million rupees, equivalent to $8.16 million.
Meanwhile, the spokesperson of WazirX reacted to the development. He assured the agency of its cooperation and understanding in the ongoing probe. The spokesperson added that WazirX has responded to all the queries issued by the agency. He noted that the WazirX team remains innocent of the allegations leveled by the agency. However, he maintained that WazirX is already evaluating its next line of action.
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