Here’s How Bengaluru Firm Used Crypto Route For Money Laundering, Tells ED

These 23 entities include accused NBFCs and their fintech companies, who deposited funds in the INR wallet of Yellow Tune Technologies with crypto exchange Flipvolt Technologies Pvt Ltd.

“These amounts were proceeds of crime derived from predatory lending practices. The purchased cryptocurrency was transferred to various undisclosed foreign wallet addresses,” the federal agency said in an official statement, as quoted by ANI.

Searches were also conducted from 8-10 August at various locations of Yellow Tune Technologies Pvt Ltd to trace the beneficial owners and recipient wallet of this company, however, the agency failed to track down the promoters of the company.

It further stated that this shell entity was incorporated by the Chinese nationals Alex and the prisoner with the active connivance of the interested CA/CS and the bank accounts were opened in the name of dummy directors.

The agency disclosed that these Chinese nationals left India in December 2020 and subsequently, bank internet credentials, digital signatures of dummy directors etc were transferred abroad and used by the said Chinese nationals to launder the proceeds of crime Gone.

The investigating agency had then said that it could trace the assets of Yellow Tune. 2.31 crore and has issued freezing order under PMLA. It said that with the help of FlipVolt crypto-exchange, Yellow Tune helped accused fintech companies to evade regular banking channels and managed to easily withdraw all fraudulent money in the form of crypto assets.

However, FlipVolt failed to provide full trace of crypto transactions carried out by crypto-exchange Yellow Tune Technologies, not that it can supply any form of KYC to the wallets of the opposite party.

The Federal Investigation Agency reported that the FlipVolt Company actively assisted Yellow Tunes in legalizing proceeds of crime value. 370 crores using the cryptocurrency route.

(with ANI inputs)

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