Authorities in India Freeze Crypto Assets Worth $10M
The scammers had distributed the assets across 70 accounts in major crypto wallets including Binance, ZebPay, and WazirX
May 1, 2024 03:23 PM
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TL;DR India's Directorate of Enforcement (ED) has frozen crypto assets worth $10 million linked to a gaming app scam. The operation revealed the misuse of digital currencies in a sophisticated money laundering scheme involving the app 'E-Nugget', which promised high investment returns.
India's financial watchdog, the Directorate of Enforcement (ED), has taken a significant step against crypto money laundering by seizing assets connected to a fraudulent gaming application.
The crackdown has frozen crypto assets valued at approximately ₹90 crore ($10 million), highlighting the government's stringent stance on illegal financial activities in the digital asset space.
Massive Seizure Amidst Investigation ED's comprehensive investigation unveiled the complexities of a scam operated through 'E-Nugget,' a gaming app that duped users with the lure of high returns.
The assets were distributed across 70 accounts in major crypto wallets, including Binance, ZebPay, and WazirX, showing the scam's broad reach.
"These crypto assets were subsequently taken into possession of ED and transferred into the crypto wallet of ED," the authority stated, marking a significant step in the fight against crypto-based money laundering.
The scam's methodology was straightforward yet deceptive. Users were enticed into investing with the promise of multi-fold returns through the guise of a gaming platform.
However, reality hit hard as the app ceased operations, trapping investors' funds. This abrupt shutdown of E-Nugget sparked the ED's intervention, uncovering a larger scheme of financial manipulation and fraud.
"However, this facade quickly fell apart once investments were made," ED's press release emphasized, shedding light on the operation's deceit.
The investigation, initiated in 2022, revealed about 2,500 fake bank accounts and led to the arrest of Amir Khan, the scam's mastermind. The ED's diligent efforts also resulted in the freezing of significant Bitcoin assets linked to the fraud in November 2022, further dismantling the fraudulent operation.
Future Implications and Ongoing Efforts This case is a testament to the increasing vigilance of Indian authorities against crypto-related crimes.
India is a significant player in global crypto adoption, so such enforcement actions are crucial for maintaining market integrity and investor confidence.
The ED's actions strongly message potential fraudsters about the severe repercussions of engaging in crypto money laundering and financial scams.
