The Bengaluru offices of Yellow Tune Technologies Private Limited were raided and searched by the Enforcement Directorate (ED). A freezing order was also issued by the law enforcement and economic intelligence agencies to freeze the bank accounts, payment gateway balances, and cryptocurrency balances of Flipvolt, a cryptocurrency exchange, worth Rs 370 crore in assets.
Several financial technology applications stopped their services and diverted their sizable profit profits, according to sources, by violating the law and adopting similar business practises. When conducting a fund trail investigation, the ED discovered that 23 entities, including the accused NBFCs and their fintech companies, deposited a sizable sum of money totaling Rs 370 crore into the INR wallets that Yellow Tune Technologies Private Limited maintained with crypto exchange Flipvolt Technologies Private Limited.
These amounts were obtained through predatory lending practises and were the profits of crime. It was also disclosed that the cryptocurrency that had been purchased had been transferred to a number of unknown foreign wallet addresses.
Additionally, between August 8 and August 10, 2022, searches were made at multiple Yellow Tune Technologies locations in an effort to identify the receivers’ wallets and the company’s beneficial owners. The company’s promoters can still not be found, though.