Posts

India Continues Their Shutdown Of Exchanges

avatar of @chekohler
25
@chekohler
·
·
0 views
·
3 min read

In today's edition of YIYL, we head back to Asia. The Indian government sure isn't taking shitcoin casinos lightly anymore after the major dump and insolvencies, casinos all over the world are hurting, they are weak, without as much financial backing right now and licking their wounds from overleveraging their fractional reserved ways, they don't have the money to secure the top legal muscle.

Making it the perfect time to start uncovering dirt or pinning dirt on them to see if they will stick. The first elbow thrown was aimed at WazirX which Binance distanced themselves from very quickly and we're still waiting on the news after funds were seized on claims of criminal wrongdoing.

Victim number 2 on the hit list

Now it looks like distressed shitcoin lender Vauld who recently suspended operatons after leveraging themselves to the tits and getting hit with Luna and 3AC's deleveraging are now deeper in it.

According to the latest reports from India their anti-money laundering agency has frozen assets worth $46.4 million from the local entity associated with Vauld for facilitating “crime-derived” proceeds.

The money allegedly comes from predatory lending firms in the latest headache for the shitcoin exchange that filed for protection from creditors last month.

Flipvolt Technologies, the India-registered entity of Singapore-headquartered 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 Enforcement Directorate said Friday of its ongoing investigation.

According to reports India's anti-money laundering services claim that Vauld were subject to

“Lax KYC norms, loose regulatory control of allowing transfers to foreign wallets without asking any reason/declaration/KYC, non-recording of transactions on Blockchains to save costs etc, has ensured that Flipvolt is not able to give any account for the missing crypto assets,” it added (PDF).

“It has made no sincere efforts to trace these crypto assets. By encouraging obscurity and having lax AML norms, it has actively assisted M/s Yellow Tune in laundering the proceeds of crime worth Rs 370 Crore using the crypto route.”

The bills pile up

This is a big blow to Vauld who currently owes creditors $363 million and with a further 43 million out of bounds, that's surely not going to make operating a lot easier. The startup counts Coinbase Ventures, Pantera Capital, and Peter Thiel-backed Valar Ventures among its backers and I wonder if they will cut ties instead of trying to save what looks like a growing dumpster fire.

There were reports that Nexo was due to purchase Vauld so I wonder if this affects the deal or will it mean an even steeper discount for Nexo to acquire the assets.

I don't think the Indian government would want to push for Vauld to rug pull customers, they just want their pound of flesh but it remains to be seen what happens, we can only speculate for now.

Casinos create enemies

In the game of gambling, you're always swimming with the sharks, and if you don't keep everyone happy you're going to get thrown under the bus. As the casinos around the world scale down, a lot of employees get fired, employees who may have sensitive information and a grudge and are willing to turn whistleblower in the process.

Again this is another example of why you shouldn't keep money on exchanges, and a lesson many are going to have to learn the hard way.

Sources:

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Earn Free bitcoin & shopEarn Free Bitcoin & shopClaim Free Bitcoin & Shop

Posted Using LeoFinance Beta