India's Directorate of Enforcement has frozen 3.7B rupees ($46.5M) worth of assets at struggling cryptocurrency exchange Vauld.The government agency discovered that wallets held by Vauld's Indian crypto exchange Flipvolt carried "proceeds of crime derived from predatory lending practices," it said in a statement Friday. Those proceeds were then transferred to unknown foreign wallet addresses.The DE found that Flipvolt had "very lax" Know-Your-Customer norms as well as no check on the source of funds of the depositor.Vauld, which is backed by crypto exchange Coinbase Global (COIN) and billionaire venture capitalist Peter Thiel, is investigating the matter and will provide updates when it gathers more information, it told Seeking Alpha via email.In the beginning of July, Crypto lender Nexo planned to buy Vauld shortly after it suspended withdrawals.
