Indian Authorities Seize $10.5 Million in Crypto from E-Nugget Scam, Collaborate with Exchanges in Major Enforcement Operation

Indian Authorities Seize $10.5 Million in Crypto from E-Nugget Scam, Collaborate with Exchanges in Major Enforcement Operation

Law enforcement authorities successfully tracked and seized over $10.5 million in cryptocurrency linked to the E-Nugget scam app across various crypto exchanges. The Enforcement Directorate (ED) of India spearheaded this operation, collaborating with platforms like Binance, ZebPay, and WazirX.

Reported by the Hindu, the ED confiscated 90 crores ($10.5 million) from E-Nugget, discovering that the scam had stashed cryptocurrencies totaling $10 million in 70 separate wallet accounts across the three exchanges. These exchanges were approached by the ED to freeze the wallet addresses and transfer the assets to the agency’s control.

The ED’s investigation revealed that E-Nugget lured investors with promises of hefty returns, masquerading as a gaming platform. Offering enticing real-money games with substantial commissions, the app duped users into investing, only to vanish once funds were deposited, leaving investors high and dry.

In total, assets valued at over 163 crores ($19.5 million) have been seized, including cash, cryptocurrencies, account balances, and office space. The scam came to light in 2022 when illicit funds were diverted into digital assets. The ED uncovered 2,500 dummy bank accounts and seized 19 crores ($2.2 million) in cash.

Aamir Khan, the alleged mastermind behind the scheme, was apprehended alongside his accomplice Romen Agarwal and is currently in custody. The use of digital assets facilitated the transfer of funds, enabling law enforcement to track, freeze, and seize the ill-gotten gains.

Despite critics often highlighting cryptocurrency’s potential for money laundering, the blockchain’s inherent transparency makes laundering such funds challenging once identified. Several instances, including the 2016 Bitfinex hack, demonstrate the effectiveness of crypto exchanges in tracing and freezing funds associated with illicit activities.