ED Seizes INR 12.8 Cr Bitcoins From Money Laundering Gaming App

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SUMMARY

The accused Aamir Khan had launched the gaming app, E-nuggets, to defraud the public: ED

The agency alleged that Khan transferred part of the amount illegally earned through the app outside India by using cryptocurrency exchanges

The accused had a dummy account on crypto exchange WazirX and cryptocurrencies purchased from the account were transferred to another account with Binance: ED

The Enforcement Directorate has seized Bitcoins worth INR 12.83 Cr in connection with a money laundering probe in relation to gaming app E-nuggets.

The ED, in a statement, said that it began the probe in the case based on an FIR filed in February 2021 against accused Aamir Khan at Park Street Police Station, Kolkata Police. The FIR was filed based on a complaint filed by Federal Bank authorities.

The agency alleged that Khan had launched the app to defraud the public. Explaining the modus operandi, it said that after collecting a sizable amount of money from the public, the gaming app would suddenly stop the withdrawal of money on some pretext. Later, all data from the app server was wiped out.

The ED investigation also revealed that the accused was transferring part of the amount illegally earned through the E-Nuggets overseas by using cryptocurrency exchanges, the agency said.

“It was found that one such dummy account in the name of Sima Naskar [Proprietor of Pixal Design] was opened in the WazirX, which was used to purchase the cryptocurrencies/crypto assets. Thereafter, the said cryptocurrencies were further transferred to another account in another Crypto Exchange, namely “Binance”,” the statement said.

The balance of the said transferred cryptocurrencies i.e. 77.62710139 Bitcoins, equivalent to INR 12.83 Cr approximately, at the Binance crypto exchange has been frozen, it added

Earlier, the ED had conducted search operations at six premises of the promoters of the gaming app, seizing INR 7 Cr as proceeds of crime.

Of late, the ED has stepped up its investigations in various cases related to gaming apps and illegal loan apps. The agency has also conducted search operations on many crypto exchanges and payment gateways like Paytm and Razorpay as part of its probe in these cases.

In August, the ED froze Wazirx’s bank assets worth INR 64.67 Cr. However, earlier this month, the crypto exchange said that the agency had unfrozen its bank accounts.

On Tuesday, the agency conducted searches at three premises linked to gaming top-up platform Coda Payments India in connection with an ongoing investigation against Coda Payments and ‘Garena Free Fire’ mobile game.

Besides, the ED is also probing multiple cryptocurrency exchanges as part of its investigation into illegal Chinese loan apps.

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