India’s Enforcement Directorate (ED) has frozen assets worth more than $46 million of beleaguered crypto lending firm Vauld.
The company suspended withdrawals, trading and deposits on its platform in July.
While the ED is tasked by the Indian government to investigate serious financial crimes, it has not made a public statement yet on the matter.
Vauld confirmed that the assets worth about $46.5 million were frozen, and that the matter is under investigation
“We are investigating this matter, we kindly request your patience and support, we will keep you updated as soon as we have more information on this,” Vauld said in a statement.
Last week, assets on WazirX totaling $8 million were frozen by the ED. WazirX is among the first crypto platforms and one of the biggest exchanges in India, with volumes exceeding $43 billion last year.
Vauld CEO Darshan Bathija, in an email issued to stakeholders last month, said the exchange has accrued liabilities totaling $400 million against assets of just $330 million.
He attributed the gap as the result of mounting losses brought on by exposure to the TerraUSD drop as well as a decline in other significant cryptocurrencies like Bitcoin and Ethereum.
Bathija was unavailable for further comment.
Rival crypto lender Nexo had offered to buy Vauld, which has been plagued by financial challenges, volatile market conditions and other difficulties as its business partners halted withdrawals.
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