Vauld Disagrees with the Freezing Order from India's Enforcement Directorate

The cryptocurrency lender Vauld has issued a statement in response to the freezing order from the Enforcement Directorate​, India's anti-money laundering agency, saying that it disagrees with the order.

Last week, Flipvolt Technologies, the India registered entity of Vauld, was used to deposit 3.7 billion Indian rupees by 23 entities, including non-banking financial companies and fintech firms, into the wallets controlled by Yellow Tune Technologies.

The agency said the Indian entity of Vauld maintains "very lax KYC norms, no EDD mechanism, no check on the source of funds of the depositors, no mechanism of raising STRs, etc", and has frozen assets worth $46.4 million from the local entity of Vauld.

"We, like several other players offering crypto services in India, had received summons from the Enforcement Directorate, Hyderabad, India in the month of July 2022, seeking certain information/documents. In due compliance with the summons, we fully cooperated with the Enforcement Directorate and provided all the required information/documents,"the lender responded in the statement.

"Despite extending our cooperation, the Enforcement Directorate has proceeded to pass a freezing order, pursuant to which crypto assets in the pool wallets of the company have ordered to been frozen to the extent of approximately INR 2040 million. The freezing order of the Enforcement Directorate is specific to that one customer that availed our services for a brief period of time, whose account we subsequently deactivated. We respectfully disagree with the freezing order."