Singapore-based Crypto Lender Vault faces money laundering charges in India after $46.5 million (INR 3.7 billion) was frozen from its local subsidiary, Flipvolt Technology.
The Indian Enforcement Department (ED) approved it on 12th August. statement It has revealed that it is investigating Vauld (Flipvolt Technologies) and Yellow Tune Technologies for facilitating illegal money transfers through cryptocurrency exchanges.
According to regulators, 23 entities under investigation by the ED reportedly deposited Rs 3.7 billion into Yellow Tune’s crypto wallets and subsequently filed suspicious transaction reports (STR) without due process. was sent to a foreign wallet address without submitting
The statement confirmed:
With the help of the Flipvolt Crypto-Exchange, which lacks very lax KYC norms, EDD mechanisms, depositor funding source checks, STR procurement mechanisms, etc., Yellow Tune is trying to prevent the accused fintech companies from evading. supported. All the fraudulent funds in the form of cryptocurrencies could easily be retrieved using normal banking channels.
Indian authorities have accused the exchange of showing laziness in handling the case.It failed to provide the KYC details of the wallet to the authorities and explain the crypto transactions made by Yellow Tune.
We make no good faith effort to track these crypto assets. By promoting obscurity and lax AML standards, it has actively helped M/s Yellow Tune to launder criminal proceeds worth Rs 37 crore using crypto routes.
As a result, the Vauld-owned Indian exchange will confiscate the laundered sum until it provides comprehensive details defending the charges against it.
India’s ED Against Money Laundering
The Enforcement Department (ED) of India has launched an investigation into the activities of non-banking financial companies (NBCF) and their compliance with the Reserve Bank of India guidelines.
A research report showed that many defaulted fintech companies used crypto to launder their profits. The cryptocurrency exchanges involved in the investigation allegedly did not conduct due diligence before helping companies send funds to foreign wallets.
According to India economic timesAbout 10 cryptocurrency exchanges have been investigated by the ED for facilitating the laundering of more than 10 billion rupees ($130 million).
As a result, on August 5, the ED raided Wazirx’s territory, freezing about $8 million. Belongs to the exchange. WazirX allegedly converted Indian rupees into cryptocurrencies and transferred them to foreign wallets through Binance.