India’s Regulator Seizes Vauld’s Assets Worth Over $46M
According to reports, the Enforcement Directorate of India has seized the funds of the crypto platform, Vauld, worth over $46M (INR 370 crore). Recall that Vauld had paused deposits last month. Meanwhile, the Indian regulator is currently investigating over ten crypto exchanges.
India’s ED Freeze Assets Belonging To Vauld Exchange
The ED (Enforcement Directorate), a law agency in India, has seized the funds of another crypto firm. According to the agency, it stated on August 12th that it had carried out a thorough investigation.
It searched Yellow Tune Technologies and froze the company’s bank and payment gateway accounts. Also, it has frozen the crypto assets of Flipvolt Technologies, a crypto exchange with assets worth over 370 crore rupees ($46M).
It is worthy to say that Flipvolt Tech is the registered entity of Vauld in India. The regulator added that about 23 entities deposited funds worth $46M into Yellow Tune Technologies’ INR wallets with Flipvolt exchange.
According to the regulator, these funds were proceeds of illegal activities and money laundering. Yellow Tune and Flipvolt cooperated to assist fintech firms in bypassing banking channels.
As a result, they managed to launder these funds in the form of digital currencies. Also, the ED accused Flipvolt of having a loose KYC regulation and no due diligence mechanisms.
Additionally, the ED said Flipvolt does not check the source of the funds made by the depositor or raise the alarm over suspicious transactions. Also, the crypto exchange did not give the complete roadmap of the transactions that Yellow Tune made.
Indian Agency Accuses Flipvolt Of Money Laundering
Flipvolt could not provide the details of the sender and receivers of the crypto transactions. In conclusion, the agency accused Flipvolt of encouraging and fostering money laundering operations for Yellow Tune.
This is due to the weak AML regulations on the platform, which allow users to send huge amounts of funds unchecked. According to Vauld, all deposits made to users’ crypto wallets are first sent to a centralized pool.
Afterward, the company will make the funds available for trading and lending. Meanwhile, the company is currently investigating the situation and seeks the patience and patience of users.
It promised to update users as soon as it has more information. Vauld paused withdrawals and deposits in July, citing financial challenges.
The company said it is undergoing restructuring and had to pause all deposits and withdrawals. Meanwhile, Vauld had filed an application with the court to protect it against legal proceedings last month.
According to reports, the firm owes creditors over $400 million. Meanwhile, 90% of these funds are from retail investors.
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