The Enforcement Directorate is investigating two foreign entities over suspected financial transactions allegedly linked to attempts to interfere in India’s domestic affairs.
The investigation began after the agency detected two suspicious transfers of $1.5 million to a UK-based firm which had links to India, The Times of India reported.
The ED identified TCC Digital Markets Ltd. A firm registered in St Kitts and Nevis as the source of the funds that reached entities and individuals in India. The funds, however, were sent through a series of layered transactions spanning mu Germany, Dubai, Lithuania, Canada, the Caribbean nation and the UK.
The investigation revealed that the original $1 million came from the Dr Matthias Karl Vogt Trust in Germany. The investigation also recovered an undated letter from Dr Matthias Vogt stating that the payment had been made in digital currency.
According to a senior official close to the investigation. The trust transferred the money to Lithuania-based Xbase Digital; UAB to get around German law before it was routed to other entities and then transferred to a UK-based firm.
Intelligence inputs also suggested that digital assets may have originated in Dubai from hawala transactions before they reached the Lithuanian entity and was then transferred to the UK between February and March 2026 in its Airwallex Lt account.
It finally became a grant from the the Saint Kitts and Nevis entity, which reportedly transferred the funds in two tranches of 67,006 and 71,746 euros to the UK firm.
The Caribbean island nation is known as a tax haven and has been associated with concerns over offshore laundering proceedings by global economic offenders.
Another $500,000 transaction was discovered, made by Canadian-registered Z base Digital to the UK firm’s Airwallex account.
The two transactions amount to $1.5 million.
The ED is examining the flow of funds to track the possible involvement of foreign entities in the country's domestic affairs.
