The Enforcement Directorate (ED), has seized a whopping 90 crores ($10.5 million) from an online scam app called E-Nuggets, with some valuable assistance from major crypto exchanges like Binance, ZebPay, and WazirX.
E-Nugget, masquerading as an online gaming app, had stashed cryptocurrencies worth $10 million in 70 different crypto wallet accounts scattered across these exchanges.
The ED swiftly acted, contacting the exchanges to block the nefarious wallet addresses and transfer the ill-gotten crypto assets to the agency’s wallet. The modus operandi of the E-Nugget app was quite slick: it lured customers with promises of hefty returns on investment under the guise of a gaming platform.
The app flaunted a slew of real-money games with tempting commissions, enticing users to splash their cash and once the investment was made, the app vanished into thin air, leaving investors unable to get their funds back.
The agency’s crackdown didn’t stop there. They’ve seized properties valued at over 163 crores ($19.5 million), including cash, cryptocurrencies, account balances, and office space.
This saga began back in 2022 when suspicions were first raised due to the app’s investment in digital assets. The ED’s investigation uncovered a whopping 2,500 dummy bank accounts and a stash of 19 crores ($2.2 million) in cash.
Aamir Khan and Romen Agarwal, the alleged masterminds, are now in custody following a scheme exposed by blockchain technology. Despite the use of digital assets for illicit transactions, law enforcement successfully traced, froze, and seized the funds.
Such cases underscore blockchain’s transparency, countering cryptocurrency critics’ claims of money laundering havens.
Also Read: ED & FBI Teamed Up for $30 Billion Cryptocurrency Scam
