The local entity of Vauld has been frozen for facilitating crime-derived proceeds from predatory lending firms.
The India registered entity of Singapore-headquartered Vauld was used to deposit 3.7 billion Indian rupee by 23 entities including non-banking financial companies.
The Indian entity of Vauld has a number of factors that made it easy to avoid regular banking channels.
The ED said that Vauld's India entity failed to provide the agency with a complete trail of transactions and KYC information.
"Lax KYC norms, loose regulatory control of allowing transfers to foreign wallet without asking any reason/declaration/KYC, non-recording of transactions on Blockchains to save costs etc., has ensured that Flipvolt is not able to give any account for the missingcryptocurrencies."
It has not made any attempts to locate these assets. It has aided M/s Yellow Tune in moving the proceeds of crime to the US using the internet.
Assets from Vauld's India entity have been frozen by the agency.
According to The Block, Vauld, which suspended its customers from withdrawing, trading and depositing on its eponymous platform last month, has filed for bankruptcy and owes $363 million. The startup is backed by a number of backers.
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