- The ED is investigating more than ten crypto exchanges in India.
- The move on Vauld comes after a Singapore court granted a three-month moratorium.
On Thursday, India’s Enforcement Directorate (ED), the country’s economic crime division froze the troubled cryptocurrency exchange Vauld assets worth $46.5 million. The step was taken shortly after the ED froze assets worth $8 million at the cryptocurrency exchange WazirX due to suspicions of money laundering.
The Singapore-based cryptocurrency lending platform failed as a result of vast user withdrawals after the Terra Luna meltdown, worth millions of dollars. And the ED charges were filed closer to a month after Vauld announced that it would be suspending all activities as it explored financial difficulties.
Trouble Around Vauld Exchange
The lending and trading firm Vauld owes its creditors $402 million. on July 8, in a statement provided to Singapore’s High Court, Vauld CEO Darshan Bathija claimed that in an email sent to customers on July 18, clients of Vauld had deposited $363 million, or approximately 90% of the total.
Furthermore, on August 1, Singapore’s court granted Vauld a three-month moratorium that would last until November 7, 2022. The judge further gave the company a four-week deadline to research withdrawal alternatives for creditors who were in need after receiving demand letters from a few creditors. And the DeFi Payments will not be subject to decisions on the company’s liquidation.
Several Indian cryptocurrency firms and their fintech partners are under investigation by the ED, for participating in predatory lending practices that broke RBI rules and utilizing telemarketers to extract exorbitant interest rates for loan applicants by misleading personal information. More than ten cryptocurrency exchanges in India are apparently under investigation by the Enforcement Directorate for allegedly laundering more than $125 million.