According to release Yellow Tune Technologies, a customer of the Indian Vauld entity Flipvolt, was recently reviewed by the India Executive Board.
Flipvolt, Vauld's legal entity in India, has had 3,7 billion Indian rupees $46 million of its assets frozen. Indian authorities say the company helped a client launder the proceeds of crime.
As a result of their findings, government authority froze Flipvolt's bank balances, payment gateway balances, and cryptocurrency balances. This policy applies to 3,7 billion Indian rupees (US$47 million) in assets.
The Board of Enforcement says that Flipvolt was involved in money laundering as 23 non-bank financial companies deposited the above assets in Flipvolt wallets held by a client known as Yellow Tune Technologies.
Indian authorities were unable to locate Yellow Tune Technologies operators. However, they discovered during the investigation that Yellow Tune is a shell company merged into two Chinese citizens known only as Alex and Kaldi. The assets involved in the Yellow Tune transactions were "nothing but proceeds of crime derived from predatory lending practices," according to the Board of Enforcement.
It's unclear whether this week's development is related to Vauld's previous insolvency. Vauld initially cited financial difficulties with partners as a reason to suspend user withdrawals, but did not specifically mention Yellow Tune at that time.
