Odisha Loan App Case: ED freezes Rs 370-Cr assets of Bengaluru Shell Company
Bhubaneswar: The Enforcement Directorate (ED) has seized assets worth Rs 370 crore from a Bengaluru-based company linked to the instant loan apps case.
The assets were parked in bank accounts, payment gateway balances, and wallets on crypto exchange Flipvolt. Flipvolt is the Indian arm of Singaporean crypto lender Vauld. The ED had conducted searches at several premises associated with the company, Yellow Tune Technologies Pvt. Ltd, over three days from August 8, according to a report by The Economic Times.
Economic Offenses Wing (EOW) of Odisha Crime Branch had arrested Rakshith and Sushanth, residents of Udupi district in Karnataka, Bhubaneswar in connection with the illegal loan enforcement case June 10. The defendants were the directors of Mudmate Technologies Private Limited, Yellow Tune Technologies Private Limited and Pinkleaf Aryan Communications Private Limited. Later, the Mumbai police had taken the due in remand.
Rakshith and Sushanth facilitated illegal loan transaction and recovery process of loans granted through illegal digital loan apps like KOKO, JOJO and other apps. They were doing this in connivance and collaboration with many other shell companies like IWT-India etc. They also ran a call center in Bangalore which used to make threatening and humiliating calls and massages to victims (Loanees) and their contacts.
The ED said its investigation revealed that Yellow Tune was a shell company with Chinese nationals on its board, and that funds to the tune of Rs 370 crore had been deposited by 23 entities, including financial firms Non-Banking Accused (NBFC) and their fintech arms. , in the Indian rupee wallets of Yellow Tune.
One of the Chinese nationals, identified as Liu Yi, 33, was spotted in Nepal on July 25. Nepalese police have confirmed that they have Midday about Liu Yi’s presence in their country. Nepali police raided two illegal call centers in Kathmandu and one in Butwal town, Rupandehi district. In the raids, 190 people, including five Chinese nationals and two Indians, were arrested for involvement in the loan application racketeering. But Yi managed to fool the police.
Vauld suspended all deposits and withdrawals on its platform in July, following the collapse of stablecoin TerraUSD and its sister token Luna. Later that month, Vauld signed an indicative term sheet to be fully acquired by Nexo, another crypto lender, pending due diligence. In July last year, Vauld raised $25 million under the Valar Ventures leadership of PayPal founder Peter Thiel.
Read also: Odisha Loan App Racket: Chinese national, wanted by EOW Bhubaneswar, spotted in Nepal