ED Tracks $1M Foreign Funding Trail: Which Two Firms, Six Countries Are Involved And Why? What Triggered Probe

(MENAFN- Live Mint) The Enforcement Directorate (ED) reportedly initiated a probe against two foreign entities over a suspicious transfer of $1 million to a UK-based firm linked to India. It was also alleged that the two entities attempted to interfere in India's domestic affairs, The Times of India reported.

Which firms are involved? In which countries are they located?

The Enforcement Directorate identified TCC Digital Markets Ltd, registered in Saint Kitts and Nevis, as the source of funds.

These funds reached entities and individuals in India through a series of layered transactions spanning multiple jurisdictions, including Germany, Dubai, Lithuania, Canada, the Caribbean nation and the UK, according to TOI.

Investigators traced the actual source of the $1 million to the Dr Matthias Karl Vogt Trust in Germany.

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Sources told TOI that the trust initially transferred the money to Lithuania-based XBase Digital UAB to get around German law before it was routed through other entities and eventually reached a UK-based firm.

During the investigation, authorities also found an undated letter from Dr Matthias Vogt which stated that the payment had been made in digital currency.

Intelligence inputs gathered by the Enforcement Directorat reportedly suggest that the digital assets may have originated from hawala transactions (illegal money transactions) in Dubai, before being transferred to the Lithuanian entity and subsequently routed to the UK.

The UK-based firm received the $1 million, sent by Voht, in its Airwallex (UK) Ltd account between February and March 2026, TOI reported.

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"The funds moved through multiple entities and financial channels, including one registered in Lithuania, before being transferred as a grant by TCC Digital Markets Ltd," sources told TOI.

This money took the form of a "grant" when the Saint Kitts and Nevis-registered entity TCC reportedly transferred the money in two instalments of £67,006 and £71,746 to the UK firm. "The funds were subsequently routed to their intended recipients in India," the sources said.

Saint Kitts and Nevis, a Caribbean island nation, is known as a tax haven and has been associated with concerns about the use of offshore jurisdictions to launder illicit proceeds, TOI reported.

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The ED also identified a separate transaction involving Canada-registered ZBase Digital Inc, which transferred $500,000 to the same UK firm's Airwallex account in February 2026.

"Indian agencies are seeking to verify the transaction details with Airwallex," according to the report.

The two alleged transactions together amount to $1.5 million. The investigation is examining the flow of funds across jurisdictions and the possible involvement of foreign entities in India's domestic affairs.

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