The Enforcement Directorate (ED) has launched an investigation into two foreign entities suspected of funneling $1.5 million into India to influence domestic affairs. The probe centers on a complex web of financial transactions involving multiple jurisdictions, including Germany, Dubai, Lithuania, Canada, the United Kingdom, and the tax haven of Saint Kitts and Nevis.
Investigators have identified the Dr. Matthias Karl Vogt Trust, based in Germany, as the primary source of a $1 million transfer. According to officials familiar with the case, the trust allegedly bypassed German regulations by first moving funds to XBase Digital UAB in Lithuania. An undated letter attributed to Dr. Matthias Vogt suggests the payment was executed in digital currency. Intelligence reports indicate these assets were likely moved through 'hawala' channels to Dubai and Lithuania before reaching the UK.
Between February and March 2026, the UK-based recipient firm received the $1 million in its Airwallex (UK) Ltd account. The funds were subsequently routed through TCC Digital Markets Ltd, a firm registered in Saint Kitts and Nevis, which disguised the money as a "grant" before distributing it to individuals and entities within India in two tranches of GB 67,006 and GB 71,746.
In addition to the German-linked funds, the ED is scrutinizing a separate $500,000 transfer made in February by the Canadian-registered entity ZBase Digital Inc. This sum was also deposited into the same UK-based Airwallex account. Indian authorities are currently working to verify these transaction details with Airwallex as the investigation into the total $1.5 million in suspicious inflows continues.
