Gaming App E-nuggets Probe: ED Seizes Bitcoins Worth INR 22.82 Cr In Binance Wallet

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SUMMARY

The ED said it carried out search operation on wallet/user ID of crypto exchange Binance and froze 150.22 Bitcoins

The agency began the probe in the matter based on an FIR filed in 2021 and has seized an amount of INR 68.42 Cr so far

Many Indian crypto exchanges are under the ED’s scanner as part of its probe in various fraudulent apps and illegal digital lending apps

The Enforcement Directorate (ED) has seized Bitcoins worth INR 22.82 Cr, stored in a wallet of crypto exchange Binance, in connection with a money laundering probe into fraudulent gaming app E-nuggets.

In a statement, the ED said that it carried out a search operation on wallet/user ID of Binance, leading to freezing of 150.22 Bitcoins under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The agency began the probe in the case based on an FIR filed in February 2021 against accused Aamir Khan at Park Street Police Station in Kolkata. The FIR was filed based on a complaint by Federal Bank.

Khan allegedly launched the app to defraud the public. After collecting a sizable amount of money from the public, the gaming app would suddenly stop the withdrawal of money. Later, all data from the app server was wiped out, the ED said.

During the probe, the agency found that multiple accounts (over 300) were used to launder money. In addition, the proceeds were also used to purchase cryptocurrencies.

Earlier, the ED seized Bitcoins worth INR 12.83 Cr in the same case from the residential premises of Khan. Over 85 Bitcoins, amounting to INR 13.56 Cr, found in a Binance wallet were also freezed in the case earlier. Moreover, cryptocurrencies equivalent to INR 47.64 Lakh were also freezed in WazirX Accounts.

The ED said that it has seized an amount of INR 68.42 Cr in the case so far.

The central agency has stepped up its various probes in cases related to fraudulent apps and illegal digital lending apps which were being used to defraud and extort money from the general public.

In many of the cases, the ED has alleged that the apps were founded and operated by Chinese nationals or entities linked to China. The proceeds from the crime were illegally transferred out of the country, in many cases through cryptocurrencies, it has alleged.

As a result, the agency has been seeking information from many Indian crypto exchanges. Earlier this year, the ED froze Wazirx’s bank assets worth INR 64.67 Cr. However, later, the crypto exchange said that the agency had unfrozen its bank accounts.