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India’s Enforcement Directorate Cracks Down on Crypto Money Laundering
The Directorate of Enforcement (ED) of India has uncovered a significant case of crypto money laundering linked to a gaming app. The ED seized frozen crypto assets worth ₹90 crore ($10 million) in connection with the scam.
Seizure of Crypto Assets
According to the department’s press release, the frozen cryptos were held in 70 accounts associated with major crypto wallets such as Binance, ZebPay, and WazirX. These assets were subsequently taken into possession by the ED and transferred to the ED’s crypto wallet.
The Deceptive Gaming App
The app, known as “E-Nugget,” posed as a gaming platform that lured gamers with promises of high returns on their investments. However, once investments were made, the true nature of the scam became evident. E-Nugget abruptly ceased operations, leaving users unable to withdraw their funds.
Investigation and Arrests
The investigation, initiated in 2022, revealed that a portion of the illicit funds was invested in digital assets. Authorities identified and analyzed around 2,500 fake bank accounts, resulting in the seizure of ₹19 crore ($2.27 million). The mastermind behind the scam, Amir Khan, was arrested and is currently in Judicial Custody.
Previous Actions and Continued Crackdown
In November 2022, the ED requested Binance to freeze 150.22 Bitcoins linked to E-Nugget. The total value of seized assets in the case reached $8.4 million. Subsequent arrests of five individuals in Kolkata, connected to the gaming app, were made. Khan, the main perpetrator, was found to be evading authorities outside India.
Law Enforcement Efforts
The Kolkata police conducted raids and confiscated multiple SIM boxes, over 2000 SIM cards, around 3,000 ATM cum debit cards, and laptops from an office in the city. India, known for its growing retail crypto adoption, continues to address illicit activities in the crypto space.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
