Shell Company: 370 crore attached to shell company of Chinese citizens, ED took action under investigation of money laundering case

The ED said that these apps were soon shut down and their profits were diverted. According to the agency, during investigation it was found that 23 entities deposited Rs 370 crore in the account of Yellow Tune Technology Pvt Ltd.

Shell Company: 370 crore attached to shell company of Chinese citizens, ED took action under investigation of money laundering case

The ED said on Friday that it has attached deposits of Rs 370 crore of a shell company, including investments in banks, payment gateways and crypto accounts.  This mask company was founded by two Chinese nationals in Bengaluru.  Both Chinese nationals have left the country in 2020.

After raiding the premises of Yellow Tune Technologies Pvt Ltd in Bengaluru for three days from August 8, the agency had put a stop to the transactions in rupees.  Illegal activities of this company came to light during the investigation of money laundering case against some smartphone based suspect app giving loan.  These apps were being run with Chinese money.

The ED said that these apps were soon shut down and their profits were diverted.  According to the agency, during investigation it was found that 23 entities deposited Rs 370 crore in the account of 'Yellow Tune Technology Pvt Ltd'.  These included the accused NBFCs (Non-Banking Financial Companies) and their fintech companies.  Deposited through crypto exchange Rs.  The ED said that despite repeated attempts, FlipVolt has failed to give full traces of crypto transactions carried out by crypto exchange Yellow Tune Technology Pvt Ltd.  It is also alleged that the crypto exchange has also not been able to provide KYC documents.

The ED said no serious efforts were made by it to trace the crypto assets.  By encouraging ambiguity and easing anti-money laundering norms, it has actively assisted Yellow Tune in legalizing proceeds of crime worth Rs 370 crore using the crypto route.