Amid Republic Media Network’s biggest financial expose of 2022, the crypto scam has got bigger. The Enforcement Directorate (ED) conducted searches at various premises of Yellow Tune Technologies Private Limited at Bangalore and has issued an order to freeze the company’s bank balances, payment gateway balances and crypto balances of Flipvolt crypto-currency exchange totalling Rs 370 crores worth of assets.
While doing a fund trail investigation, the federal agency found that a large amount of funds around Rs 370 Crore was deposited by 23 entities including accused NBFCs and their fintech firns into the INR wallets of Yellow Tune Technologies Pvt Ltd held with Crypto Exchange Flipvolt Technologies Pvt Ltd. The ED alleged that the frozen amount is the proceeds of crime derived from predatory lending practices.
The Cryptocurrency purchased was transferred to various unknown foreign wallet addresses. According to ED, the company’s promoters are untraceable.
“It is found that this shell entity was incorporated by Chinese Nationals Alex and Kaidi (real name not known) with the active connivance of willing CAs/CSs and the Bank Accounts were opened in the name of dummy Directors. These Chinese Nationals left India during Dec 2020 and later the Bank internet credentials, Digital Signatures of dummy Directors etc., were shipped abroad and were used by the said Chinese Nationals to launder the proceeds of crime. ED could trace the assets of Yellow Tune to the extent of Rs 2.31 Crore and has issued the freezing order under PMLA,” the agency said in a statement.
ED added, “Lying with Flipvolt Crypto-exchange in the form of Bank and Payment Gateway Balances worth Rs 164.4 Crore and Crypto assets lying in their pool accounts worth Rs 203.26 Crore, are frozen under PMLA, 2002, till complete fund trail is provided by the crypto-exchange.”
National crypto scam: The biggest financial expose of 2022
In a mega-multi city probe, Republic TV has unravelled what is possibly the biggest financial expose of 2022, involving a web of Chinese links, dubious loan apps and crypto exchanges. Republic TV learnt that 10 cryptocurrency exchanges, allegedly including WazirX, are under the scanner of government agencies for laundering around Rs 1,000 crore.
WazirX is suspected to have laundered around Rs 67 crore. Last week, ED issued an order to freeze the exchange’s Bank balances to the tune of Rs 64.67 crore after conducting raids on a Director of Zanmai Labs Private Limited who owns this crypto exchange. Sources inform that 74 fintech firms are under the scanner for cheating and 12 NBFCs are being probed for flouting RBI norms. READ THE FULL STORY.