![\"India](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/08\/vauld-india-ed-768x432.jpg\")
<\/p>\n<\/p>\n
India\u2019s Enforcement Directorate (ED) has frozen crypto exchange Vauld\u2019s crypto and bank assets worth about INR 370 crore ($46,439,181). Vauld halted deposits and withdrawals last month. The Indian law enforcement agency is reportedly investigating more than 10 cryptocurrency exchanges.<\/strong>\n<\/p>\n \n The agency announced<\/a> Friday that it has conducted searches at various premises of Yellow Tune Technologies in Bangalore and has issued an order to freeze its bank balances, payment gateway balances, and crypto balances of Flipvolt Technologies\u2019 crypto exchange totaling 370 crore rupees ($46,439,181) worth of assets. Flipvolt Technologies is the India-registered entity of Singapore-headquartered Vauld, a cryptocurrency trading, borrowing, and lending platform.<\/p>\n ED explained that approximately 370 crore rupees were deposited by 23 entities into the INR wallets of Yellow Tune Technologies held with Flipvolt Technologies\u2019 crypto exchange. These amounts were \u201cproceeds of crime derived from predatory lending practices,\u201d the authority said, elaborating:\n<\/p>\n Yellow Tune by using the assistance of Flipvolt crypto exchange \u2026 assisted the accused fintech companies in avoiding regular banking channels, and managed to easily take out all the fraud money in the form of crypto assets.<\/p>\n<\/blockquote>\n \n In addition, Flipvolt failed to give the complete trail of crypto transactions made by Yellow Tune Technologies and could not supply any form of KYC of the opposite party wallets, ED noted.<\/p>\n The authority concluded that \u201cby encouraging obscurity and having lax AML [anti-money laundering] norms,\u201d the crypto exchange \u201chas actively assisted Yellow Tune in laundering the proceeds of crime worth 370 crore rupees using cryptocurrency,\u201d adding:\n<\/p>\n Therefore, equivalent movable assets to the extent of Rs 367.67 crore lying with Flipvolt crypto exchange in the form of bank and payment gateway balances worth Rs 164.4 crore and crypto assets lying in their pool accounts worth Rs 203.26 crore are frozen under PMLA, 2002, till complete fund trail is provided by the crypto exchange.<\/p>\n<\/blockquote>\n \n The crypto exchange told Businesstoday: \u201cWe are investigating this matter, we kindly request your patience and support, we will keep you updated as soon as we have more information on this.\u201d<\/p>\n After halting deposits and withdrawals last month, Vauld announced<\/a> a restructuring plan on July 4 due to \u201cfinancial challenges\u201d it faced in recent months. Defi Payments Pte Ltd., the entity that operates Vauld in Singapore, also applied<\/a> for court protection from legal proceedings being commenced against it. The exchange is currently not licensed in Singapore.<\/p>\n In July last year, Vauld raised<\/a> $25 million in a Series A funding round for its India-based borrowing and lending platform. The round was led by Valar Ventures, a U.S.-based venture capital fund co-founded by billionaire Peter Thiel. Pantera Capital, Coinbase Ventures, CMT Digital, Gumi Cryptos, Robert Leshner, Cadenza Capital, and others also participated in the round.<\/p>\n Last week, ED announced<\/a> that it has frozen the bank assets of Wazirx, a major crypto exchange in India. The authority detailed that it conducted searches on one of the directors of Zanmai Labs, which owns Wazirx, and issued an order to freeze the exchange\u2019s bank balances to the tune of INR 64.67 crore.<\/p>\n ED similarly explained that the action against Wazirx is part of a money laundering investigation involving non-bank financial companies (NBFC) and their fintech partners for \u201cpredatory lending practices in violation of the RBI [Reserve Bank of India] guidelines.\u201d<\/p>\n In addition, the Economic Times reported Thursday that ED is probing<\/a> at least 10 cryptocurrency exchanges for allegedly laundering more than INR 1,000 crore. The crypto trading platforms allegedly did not conduct adequate due diligence and failed to file suspicious transaction reports.<\/p>\nIndian Authority Freezes Another Cryptocurrency Exchange\u2019s Assets<\/h2>\n
\nThe Enforcement Directorate (ED), a law enforcement and economic intelligence agency of the government of India, has frozen the assets of another cryptocurrency exchange.<\/p>\n![\"India](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/08\/ed-vauld-tweet.jpg\" "\\"India")
<\/a><\/p>\n\n
\nThe agency alleged that Flipvolt \u201chas very lax KYC [know-your-customer] norms, no EDD [enhanced due diligence] mechanism, no check on the source of funds of the depositor, no mechanism of raising STRs [suspicious transaction reports].\u201d<\/p>\n\n
\nVauld\u2019s website explains that \u201cAs soon as a user deposits funds to their Vauld wallet, it goes to a centralized pool.\u201d From this pool, the funds are allocated for lending and trading. PMLA, 2002, is India\u2019s Prevention of Money Laundering Act.<\/p>\n