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Over $46M in Vauld Assets Have Been Confiscated By India’s Regulator

Over $46M in Vauld Assets Have Been Confiscated By India's Regulator

Over $46 million in cryptocurrency belonging to the Vauld platform was reportedly seized by India’s Enforcement Directorate (INR 370 crore). Just to refresh your memory, Vauld suspended deposits earlier this month. At the same time, over ten cryptocurrency exchanges are being looked into by India’s regulatory body.

The Indian ED has frozen Vauld Exchange’s holdings.

The Enforcement Directorate (ED), an Indian law enforcement agency, has frozen the assets of another cryptocurrency company. The organization claims it conducted a comprehensive investigation and announced its findings on August 12th.

Bank and payment gateway accounts for Yellow Tune Technologies were frozen after a search. As another example, it has froze the $46 million in crypto assets held by the exchange Flipvolt Technologies.

The company Vauld in India is Flipvolt Tech. According to the governing body, Yellow Tune Technologies’ INR wallets on the Flipvolt exchange received deposits totaling $46M from 23 different companies.

The oversight agency has determined that these cash were laundered from the profits of criminal activity. Together, Yellow Tune and Flipvolt helped fintech companies circumvent traditional banking systems.

Therefore, they were able to conceal their illicit gains by investing in cryptocurrency. In addition, the ED claimed that Flipvolt lacked proper due diligence procedures and had lax know-your-customer rules.

In addition, the ED stated that Flipvolt does not verify the origin of depositor funds or flag dubious financial dealings. The cryptocurrency exchange also did not provide a full audit trail of Yellow Tune’s trades.

One Indian government agency has accused Flipvolt of money laundering.

In this case, Flipvolt was unable to reveal any information about the crypto transactions, including who sent and who received the funds. Last but not least, the agency said that Flipvolt actively helped facilitate money laundering by Yellow Tune.

It’s because the site has lax anti-money-laundering measures, making it easy for users to move large sums of money without being noticed. According to Vauld, a centralized pool receives all user cryptocurrency deposits before they are distributed to individual wallets.

Following that, the funds will be made available for trading and lending by the company. Meanwhile, the firm is looking into what happened and would appreciate users’ understanding as it does so.

Whenever new information becomes available, it will be shared with users. For financial reasons, Vauld suspended all deposits and withdrawals in July.

All deposits and withdrawals have been temporarily halted as the company undergoes a restructure, the company said. Last month, Vauld applied to the court for protection from any potential legal action.

The company has a reported debt of over $400 million. On the other hand, 90% of these funds come from ordinary people.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.