ED investigates foreign entities over India meddling

The Enforcement Directorate (ED) is probing two foreign companies over allegations of financial dealings linked to potential interference in India's internal matters, including a $1 million transfer to a UK-based firm tied to India, according to The Times of India. The agency traced the funds' origins to the Dr Matthias Karl Vogt Trust in Germany, which initially sent the money to Lithuania's XBase Digital UAB to skirt German law.

From there, the cash was routed through entities in Germany, Dubai, Lithuania, Canada, the Caribbean, and the UK. Intelligence gathered by the ED hints that the digital assets may have begun as hawala transactions in Dubai before moving to Lithuania and then to the UK. The UK-based company received the $1 million in its Airwallex (UK) Ltd account between February and March 2026, having passed through multiple entities and financial channels, including a Lithuanian firm.

The Saint Kitts and Nevis-registered entity reportedly gave the money in two payments of £67,006 and £71,746 to the UK firm. The funds eventually reached their intended recipients in India. Saint Kitts and Nevis is known for its tax haven status and has been linked to concerns over using offshore jurisdictions for laundering illicit funds.

The ED is also looking into a separate $500,000 transfer from Canada-registered ZBase Digital Inc to the same UK firm's Airwallex account in February 2026. Indian authorities are seeking to cross-check the transaction details with Airwallex. The two alleged transactions total $1.5 million, and the investigation is probing the flow of funds across various jurisdictions and the possible involvement of foreign entities in India's domestic affairs.