India Agency, Binance Bust Crypto Scam App

India seizes $10.5M in crypto from E-Nuggets scam app with exchange help.

Indian law enforcement agency, the Enforcement Directorate (ED), seized 90 crores ($10.5 million) from the online fraud application E-Nuggets with the assistance of cryptocurrency exchanges, including Binance, ZebPay, and WazirX. 

A report by the Hindu indicates that E-Nugget, an online gaming application, maintained cryptocurrency holdings equivalent to $10 million in seventy distinct wallet accounts distributed across three cryptocurrency exchanges.

The ED contacted these exchanges to block the wallet addresses and transmit the crypto assets to the agency’s wallet.

In its report, the ED alleges that the E-Nugget application, masquerading as a gaming platform, purportedly provided consumers with substantial returns on investment.

Designed for users to wager on, the application provided several enticing real-money activities that offered substantial commissions and constituted a lucrative investment opportunity. However, the app went silent as soon as funds were invested, leaving investors stranded and unable to recover their investments.

The agency has affixed and seized property worth more than 163 crores ($19.5 million), including cash, cryptocurrency, account balances, and office space. 

The fraudulent application initially came to public attention in 2022, when a portion of the organization’s funds was allocated to digital assets. The ED’s investigation uncovered 2,500 fictitious bank accounts containing currency worth 19 crores ($2.2 million). 

Aamir Khan, the presumed mastermind of the scheme, and his accomplice Romen Agarwal were both apprehended and are presently detained. 

Because the funds were being transferred via digital assets, law enforcement could track them down, sequester them, and seize them. 

Despite frequent attempts by detractors to link cryptocurrencies with money laundering, the blockchain’s inherent characteristics render the process of laundering funds exceedingly arduous once they have been identified. On multiple occasions, cryptocurrency exchanges have traced and frozen funds associated with illicit activities. 

The 2016 Bitfinex breach is the most prominent illustration of transparency and why money laundering with digital assets is so tricky. 

Destroyers seized 119,756 Bitcoin from the cryptocurrency exchange. In 2022, however, the individuals responsible for the scheme were apprehended and apprehended while attempting to launder the funds. 

Binance and ZebPay have yet to respond to inquiries for comments from Cointelegraph as of the time of publication.