The Crypto sector is under the radar of Enforcement Directorate of India (ED) which is conducting investigation on a number of digital exchanges. The Singapore based crypto exchange, Vauld has also come under the scrutiny of the enforcement directorate which is the nodal agency which investigates money laundering cases.
Vauld Claims It Is Cooperating
The ED in a press release mentioned that it had searched the local branch of Vauld in Bangalore and has consequently freezing Singapore Based Crypto Exchange’s bank balances and payments gateway balances. Assets Worth Rs 370 crore has been blocked.
The Crypto Exchange on its part has said that it had received summons from the agency pertaining to some documents and details in July 2022. The Exchange called ED’s actions as very unfortunate that despite fully cooperating and furnishing all the required documents, ED choose to freeze accounts to the tune of $25 million.
Vauld added that it completely disagrees with the freezing order. The ED had specifically talked to one of the clients which availed Vauld services. However, the account was deactivated.
Singapore Based Crypto Exchange also added that it is seeking legal advice and will seek to do what is best for its customers and the company. It also added that it fully complies with the KYC regulation of every country where it is doing business. It also added that it has fully cooperated with the enforcement agency and will continue to do in the future also.
ED on the other hand said that the people associated with the company are untraceable. The ED has also unearthed some shell companies which were established by Chinese nationals. The ED also discovered that several bank accounts were operated in the name of fictitious Directors. The suspects have already left India in December 2020.