The Indian Enforcement Directorate (ED) has frozen INR 370 crore ($46 million) in crypto and bank assets of troubled crypto lender Vauld. In July, the crypto firm suspended withdrawals and deposits.
The ED discovered these assets in bank accounts, payment gateway balances, and wallets on the Flipvolt crypto exchange. The $46 million sum was associated with the instant loan apps case. Flipvolt is the Indian arm of Singapore’s Vauld exchange.
According to a recent statement, the crypto lender stated that the ED had given the green light to freeze the assets despite its full cooperation.
“We, like several other players offering crypto services in India, had received a summons from the Enforcement Directorate, Hyderabad, India, in July 2022, seeking certain information/documents. In compliance with the summons, we fully cooperated with the Enforcement Directorate and provided all the required information/documents.” Vauld stated on the latest press release.
ED investigated Vauld about Money Laundering.
The ED conducted searches at multiple Yellow Tune Technologies Private Limited locations in Bangalore before ordering the freezing of Vault’s bank accounts. During the investigation, the ED discovered that funds worth nearly $46 million were deposited (370 crore INR).
According to India’s federal agency, frozen money is the proceeds of crime derived from illegal lending practices. The Enforcement Directorate has been conducting these raids at various locations.
These premises belong to Bengaluru-based Yellow Tune Technologies. The raids were conducted with an investigation into entities suspected of engaging in fraudulent practices via instant loan apps. The analysis is not over yet, and further research is possible.
“It is unfortunate that, despite extending our cooperation, the Enforcement Directorate has proceeded to pass a freezing order, according to which crypto assets in the pool wallets of the company have been ordered to be frozen to approximately INR 2040 million. However, the freezing order of the Enforcement Directorate is specific to that one customer that availed our services for a brief period of time and whose account we subsequently deactivated. Therefore, we respectfully disagree with the freezing order.” Vauld stated in the latest press release.