India's Enforcement Directorate (ED), a government agency that is responsible for probing financial crimes, has frozen assets worth 3.7 billion rupees ($46.4 million) at crypto exchange Vauld, it said in a statement Friday.
- The statement confirmed authorities are interested in wallets held by Flipvolt – Vauld's legal entity in India – which contain "proceeds of crime derived from predatory lending practices" that it said were subsequently transferred abroad. The ED accused the company of aiding that process via lax checks.
- In July, the crypto lender, which is backed by billionaire Peter Thiel, filed for bankruptcy protection from its Singaporean creditors. That came days after Vauld suspended withdrawals on its platform, following a market downturn that led to significant withdrawals.
- Vauld said it will provide an update when it has more information.
UPDATE (August 12, 2022, 12:55pm UTC): Amended headline and first two paragraphs to refer to Enforcement Directorate statement.
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