Reports indicate that the Enforcement Directorate of India has taken possession of funds Assets to the cryptocurrency platform known as Vauld that are valued at more than $46 million (INR 370 crore). Remember that Vauld stopped accepting deposits last month. During this time, the Indian regulator is conducting an investigation into over ten different cryptocurrency exchanges.
The Vauld Exchange’s Assets Have Been Put on Freeze by India’s Economic Development Board.
The funds of yet another cryptocurrency company have been frozen by India’s Enforcement Directorate (ED), which is a branch of the Indian government responsible for law enforcement. According to the agency, it announced on August 12 that a thorough investigation had been conducted.
Yellow Tune Technologies’ bank and payment gateway accounts were frozen after a search. Additionally, it has froze the cryptocurrency assets of Flipvolt Technologies, which is a cryptocurrency exchange with assets worth over 370 crore rupees (approximately 46 million dollars).
It is important to point out that Flipvolt Tech is the Vauld company that is officially registered in India. According to the regulating body, approximately 23 different entities deposited funds totaling $46 million into the INR wallets maintained by Yellow Tune Technologies with the Flipvolt exchange.
The governing body has concluded that these funds were laundered or stolen in some way. Yellow Tune and Flipvolt collaborated to help fintech companies circumvent banking channels.
As a result, they were able to launder these funds through the use of digital currencies. In addition, the ED alleged that Flipvolt had lax KYC regulations and no due diligence mechanisms.
The ED also claimed that deposits are not verified for legitimacy and that suspicious activity is not flagged by Flipvolt. Additionally, the cryptocurrency exchange did not provide a comprehensive roadmap of the transactions that were made by Yellow Tune.
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India accuses Flipvolt of money laundering
Flipvolt was unable to disclose the sender and recipient information for crypto transactions. In conclusion, the agency accused Flipvolt of encouraging and facilitating Yellow Tune’s money laundering activities.
This is because the anti-money laundering (AML) regulations on the platform are lax, making it possible for users to send large sums of money without those transfers being checked. According to the information provided by Vauld, all deposits that are made to users’ cryptocurrency wallets are first sent to a centralized pool.
The business will then make the funds available for trading and lending. In the meantime, the company is conducting an investigation into the matter and requests the users’ patience.
It promised to update users as soon as more information becomes available. In July, due to the company’s ongoing financial difficulties, Vauld temporarily halted both deposits and withdrawals.
The company stated that it is undergoing reorganization and had to halt all deposits and withdrawals as a result. Last month, Vauld submitted an application to the court seeking protection from legal action.
Reports indicate that the company owes creditors more than $400 million. In the meantime, 90% of these funds come from individual investors.
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