The Singapore-based crypto-exchange company – Valud has come under the radar of the Enforcement Directorate of India (ED), the anti-money laundering agency of the country.
ED in a press release stated that it had conducted a search at the Bangalore office of Valud and has frozen assets worth Rs. 370 crores (approximately $46 million). The regulatory authority has issued an order to freeze Valud’s bank balances and payments gateway balances.
The ED has launched an investigation over several digital asset exchange platforms. According to a report by Economic Times, ED is investigating at least 10 crypto exchanges for allegedly assisting foreign firms in money laundering using crypto. Many crypto exchanges have been summoned in July by the agency, asking to submit certain details and documents.
The agency has estimated that the accused firms have laundered over Rs. 1000 crores (approximately $130 million), in the instant loan app case.
In a statement by ED, it was looking into Flipvolt-Valud’s legal entity- which contains “proceeds of crime derived from predatory lending practices” that was subsequently transferred abroad. The crypto exchange has been accused of aiding the process via lax checks by the ED.
Valud issued a statement stating that despite co-operating with the ED, the regulator had moved on to freeze its assets. Around $25 million worth of crypto assets in the pool wallets have been frozen.
The crypto exchange has disagreed with the freezing order and stated that ED specifically has called out one customer who had availed of their services. However, that account was deactivated later.
Next Step by Valud
The blog mentioned that Valud will be seeking legal advice to ensure that the interests of the customers and company are protected in the further course of action. The exchange strictly follows KYC regulations in every country. The exchange has also assured that it will continue to co-operate with the ED.
The report by ED mentioned that the promoters of the company are untraceable. It was found that some shell entities were made by some Chinese nationals and some new bank accounts were also opened in the name of dummy directors. The suspects had left India in December 2020.
The post appeared first on Coinpedia
