The Enforcement Directorate on Tuesday stated it has taken possession of funds value Rs. 90 crore, stored in cryptocurrency wallets of exchanges like Binance, ZebPay and WazirX, as a part of a cash laundering investigation linked to a web-based gaming app “scam”.
“These crypto assets were subsequently taken into possession and transferred into the crypto wallet of the ED,” the federal company stated in an announcement.
The investigation pertains to a web-based gaming rip-off app “scam” known as ‘E-Nugget’ that masqueraded as a gaming platform and “promised” customers excessive returns on their investments.
An FIR filed on the Park Street Police Station of Kolkata turned the premise of the ED case that was registered beneath the provisions of the Prevention of Money Laundering Act (PMLA).
The app provided a collection of engaging video games designed for real-money wagering promised customers hefty commissions and painted an image of a “golden investment” alternative, the ED stated.
However, this facade shortly fell aside as soon as investments have been made with the app going darkish and leaving buyers stranded with no strategy to reclaim their funds, it stated.
The ED stated it uncovered the alleged unlawful actions of the app in 2022 and located that part of the ill-gotten features was invested in digital property.
About 2,500 mule or dummy financial institution accounts have been recognized, it stated.
The company stated it sought particulars of crypto wallets concerned on this case and held with cryptocurrency exchanges like Binance, ZebPay and WazirX.
“Information gathered from Binance and other exchanges led to the freezing of funds totalling nearly Rs 90 crore available in 70 accounts, maintained with Binance, ZebPay and WazirX holding funds, which were linked to the scam,” it stated.
The company had arrested two folks — “mastermind” Aamir Khan and Romen Agarwal and in addition has filed a cost sheet within the case.
It has seized, connected or frozen a complete of Rs. 163 crore value of property on this case that includes money, cryptocurrencies, checking account balances, and a few workplaces.
