E-Nugget Case: ED Seizes Funds Worth INR 90 Cr Kept In Binance, WazirX And ZebPay Wallets

SUMMARY

The now-seized frozen crypto assets worth INR 90 Cr were kept in wallets of Binance, ZebPay and WazirX

The E-Nugget app deceived users by promising hefty commissions in exchange for playing games on the platform that were designed for real money wagering

The development comes at a time when scams involving crypto are quietly on the rise in India, along with a surge in the popularity of digital assets

The Enforcement Directorate has seized frozen crypto assets worth INR 90 Cr, kept in wallets of Binance, ZebPay and WazirX, in connection with a money laundering case involving online gaming app E-Nugget.

The ED alleged that E-Nugget disguised itself as a gaming platform and lured users with promises of lucrative profits.

The law enforcement has seized, attached or frozen assets totalling INR 163 Cr in this case so far, including cash, cryptocurrencies, bank account balances and office space, as per ET’s report.

The money laundering case stems from an FIR registered by the Kolkata police under the anti-money laundering law.

Investigation revealed that Aamir Khan, the alleged mastermind behind the E-Nugget scam, along with Romen Agarwal, defrauded several people.

The E-Nugget app deceived users by promising hefty commissions in exchange for playing games on the platform that were designed for real money wagering.

However, once the investments were made, the fraudsters abruptly halted money withdrawals, erased all the user data from the app servers, and ran away with investors’ funds.

The alleged scam came to light in 2022 when the ED found that a part of the illicit gains was invested in digital assets and being funneled into overseas countries.

The ED identified nearly 2500 mule/dummy bank accounts, and consequently conducted raids and seized INR 19 Cr in cash.

It’s pertinent to note that the main accused in the case, Khan, and his associate Agarwal have been arrested and placed in judicial custody.

The development comes at a time when scams involving crypto are quietly on the rise in India, along with a surge in the popularity of digital assets.

In June last year, Delhi police arrested three people in connection with a work-from-home job scam involving YouTube likes and crypto.

In October 2022, 31 people from Maharashtra’s Solapur were allegedly defrauded out of INR 44 Lakh in a crypto-fraud.

As of January 2023, the ED claimed to have seized assets to the tune of INR 936 Cr in connection with various crypto frauds.

According to an Inc42 analysis, investors across the globe were duped of more than INR 72,000 Cr in 12 crypto scams, including Bitconnect and GainBitcoin, that involved Indians or had Indian-origin founders.

Last year, the government imposed money-laundering provisions on the crypto sector, tightening oversight of virtual assets along with crypto firms.

Recently, offshore crypto exchange platforms Binance, KuCoin and OKX among others received a show cause notice from the finance ministry for not complying with anti-money laundering laws.

In line with the government’s directive, tech giant Apple, in January, delisted Binance, KuCoin and OKX from its India app store.