In a significant development, the Enforcement Directorate (ED) has uncovered and seized a staggering 90 crores ($10.5 million) from an online scam app known as E-Nuggets. This operation made possible with assistance from major cryptocurrency exchanges like Binance, ZebPay, and WazirX, marks a crucial step in combating fraudulent activities in the digital asset space.
App Masquerading as a Gaming Platform
E-Nugget, posing as an online gaming application, attracted unsuspecting users with promises of substantial returns on investments. Operating under the guise of a gaming platform, the app enticed users with a variety of real-money games and lucrative commissions. However, once users invested their funds, the app vanished, leaving investors unable to retrieve their money.
Upon discovering the scam, the ED swiftly intervened, collaborating with cryptocurrency exchanges to block the fraudulent wallet addresses associated with E-Nugget. Approximately $10 million worth of cryptocurrencies, spread across 70 different wallet accounts on various exchanges, were seized and transferred to the agency’s wallet.
Crackdown and Seizures
The ED’s crackdown extended beyond seizing cryptocurrencies, encompassing properties valued at over 163 crores ($19.5 million), including cash, cryptocurrencies, account balances, and office space. The investigation, which began in 2022, uncovered 2,500 dummy bank accounts and a stash of 19 crores ($2.2 million) in cash linked to the fraudulent scheme.
Masterminds in Custody
The alleged masterminds behind the E-Nugget scam, Aamir Khan and Romen Agarwal are currently in custody following their involvement in the illicit operation. Blockchain technology played a crucial role in exposing the scheme, enabling law enforcement to trace, freeze, and seize the funds despite their use in illicit transactions.
This case highlights the transparency inherent in blockchain technology, effectively countering criticisms of cryptocurrencies as havens for money laundering. By leveraging blockchain’s immutable ledger, law enforcement agencies can effectively combat fraudulent activities and protect investors from falling victim to scams in the digital asset space.
