Singapore-based crypto lender Wold has issued a freezing order in connection with an ongoing money laundering case as the Indian Enforcement Directorate (ED).
Wald claims the freezing order hurts even more because the Singapore-based lender claims it requests documents and information along with summons to law enforcement.
Wold is one of ten crypto exchanges with alleged Chinese connections that have come under the scanner of Indian authorities for aiding in the laundering of Rs 1,000 crore. Firms including Indian crypto exchange WazirX are suspected of money laundering to various predatory fintech companies, who used the exchanges to buy Rs 100 crore for transmission to foreign wallets. The ED claims that the crypto companies did not conduct adequate Know Your Customer investigations or maintain Suspicious Transaction Records (STRs). A person familiar with the matter said the lack of regulation provided a cloak of money laundering for companies to move their assets overseas. In many cases, transactions of people living in different areas were traced.
WazirX CEO Nischal Chetty recently clashed with Binance CEO Changpeng ‘CZ’ Zhao online over the ownership of the exchange.
The ED had recently frozen the bank accounts of WazirX worth Rs 65.67. Now it turns its attention to embattled lender Wald.
Vuld lawyers up
According to Wald, the ED has ordered the freezing of Rs 2040 million from a “pool wallet” in respect of a customer whose account has been deactivated. Wold’s Indian arm FlipVolt Technologies was reportedly used by 23 companies in a wallet owned by Chinese company Yellow Tune Technologies, whose founders have not been traced.
While adhering to strict KYC rules, Wald has respectfully disagreed with the ED’s request and is seeking legal advice. The company said that the safety of customer and stakeholder assets is of paramount importance.
It remains committed to working with ED in the future.
hard six weeks for waldo
Wald, backed by Peter Thiel’s Weller Ventures and US exchange Coinbase, suspended withdrawals, deposits and trading on its platform due to uncertain market conditions on July 4, after users withdrew $200 million. Staffing has also been cut by 30 percent. It quickly joined with lawyers to explore a restructuring option. A day later, Nexo, a lending platform, offered to buy the company, signing a term sheet giving it 60 days to complete the purchase.
On July 8, 2022, the company announced an application for a stay order to make room for the restructuring process in Singapore. Similar to filing for Chapter 11 bankruptcy under US law, the moratorium allowed the company to continue operating without fear of liquidation.
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