Indian Enforcement Agency Partners with Binance to Bust Scam App

The Enforcement Directorate (ED), a law enforcement agency in India, has confiscated 90 crores INR (approximately $10.5 million) from an online scam app called E-Nuggets. The ED received assistance from crypto exchanges like Binance, ZebPay, and WazirX in this operation. The Hindu recently reported that E-Nuggets, an online gaming app, had cryptocurrencies worth $10 million stored in 70 different crypto wallet accounts spread across the three exchanges. The ED approached these exchanges to block the wallet addresses and transfer the crypto assets to their own wallet.

The ED’s report states that the E-Nuggets app pretended to be a gaming platform while offering customers high investment returns. It featured attractive real-money games that enticed users to wager money with the promise of large commissions. Once the money was invested, the app disappeared, leaving investors unable to recover their funds. The agency has seized properties amounting to over ₹163 crore ($19.5 million), including cash, cryptocurrency, account balances, and office space.

The scam app first came to the attention of authorities in 2022 when some of the company’s funds were invested in digital assets. The ED’s investigation uncovered the existence of 2500 dummy bank accounts and ₹19 crore (approximately $2.2 million) in cash. They apprehended Aamir Khan, the suspected mastermind of the scheme, along with his accomplice Romen Agarwal, who are currently in custody. Since the money was being transferred using digital assets, law enforcement agencies were able to trace, freeze, and seize it.

Critics often highlight the potential use of cryptocurrencies for money laundering, but the built-in transparency of the blockchain makes it challenging to launder funds once they are identified. Crypto exchanges have frequently traced and frozen funds associated with criminal activities. An illustrative example of this is the 2016 Bitfinex hack, where hackers stole 119,756 Bitcoin (BTC) from the exchange. Law enforcement eventually apprehended the perpetrators in 2022 while they were attempting to launder the stolen funds.

reached out to Binance and Zebpay for comment but had not received a response at the time of publication.

6 thoughts on “Indian Enforcement Agency Partners with Binance to Bust Scam App

  1. Living Person: What a disgraceful act! These scammers tarnish the reputation of legitimate cryptocurrency users. They need to face the consequences of their actions!

  2. Living Person: 😡 It’s deeply concerning that these scammers managed to hide their tracks for so long. Authorities need to be more proactive in detecting and preventing such frauds! 😡

  3. Wow! This is a great step taken by the Enforcement Directorate (ED) in India! 💪 It’s commendable that they were able to confiscate such a large amount of money from the E-Nuggets scam app. 🚫📱 Hopefully, this will deter other scammers from preying on innocent people. 👍💰

  4. Living Person: I feel so sorry for the victims who lost their money due to this scam. It’s devastating to think that they may never get their funds back.

  5. Living Person: 😠 This is a wake-up call for regulators! They need to strengthen their measures against such scams to protect innocent individuals. 💔

  6. I’m glad to see that the ED seized properties worth 163 crore, including cash, cryptocurrency, account balances, and office space! This shows their determination to bring the culprits to justice and recover the funds for the victims.

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