The Enforcement Directorate (ED) of India, collaborating with crypto exchanges such as Binance, ZebPay, and WazirX, successfully seized 90 crores ($10.5 million) from the online scam app E-Nuggets.
Cryptocurrencies worth $10 million were discovered in 70 different crypto wallet accounts spread across the aforementioned exchanges. The ED coordinated with these exchanges to block wallet addresses and transfer the assets to the agency’s wallet.
E-Nugget, masquerading as an online gaming app, offered customers high returns on investment but vanished after receiving investments, leaving investors unable to retrieve their funds.
Since 2022, the ED had been investigating the scam, uncovering 2,500 dummy bank accounts and seizing 19 crores ($2.2 million) in cash.
Mastermind Aamir Khan and accomplice Romen Agarwal were apprehended and remain in custody.
While critics often cite cryptocurrency for money laundering, its blockchain nature makes it challenging to launder funds once identified. Crypto exchanges have successfully traced and frozen funds associated with criminal activities.
The 2016 Bitfinex hack, where hackers stole 119,756 Bitcoin, serves as a prime example of the difficulty in laundering funds using digital assets. Perpetrators were apprehended in 2022 while attempting to launder the stolen funds.
Binance and ZebPay were contacted for comments but had not responded by the time of publication.
The ED’s actions highlight the agency’s commitment to combatting financial crimes facilitated through digital assets, while also showcasing the transparency and traceability inherent in blockchain technology.
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