The Enforcement Directorate (ED) disclosed on Tuesday that it has seized Rs 90 crore, kept in cryptocurrency wallets of exchanges like Binance, ZebPay and WazirX, as part of a money laundering investigation linked to an online gaming app "scam".
The Enforcement Directorate stated in a release that these crypto assets had been acquired and transferred into its possession as part of the investigation. The probe revolves around a fraudulent online gaming application named 'E-Nugget', which purported to offering and "promising" users high returns on their investments.
The investigation, initiated based on an FIR filed at the Park Street Police Station in Kolkata, was registered under the provisions of the Prevention of Money Laundering Act (PMLA).
The application lured users with a variety of games involving real-money betting, promising lucrative commissions, and portraying itself as a "golden investment" opportunity, the ED said.
However, once investments were made, the app ceased operations, going dark and leaving investors stranded without a way to reclaim their funds, it said.
The Enforcement Directorate revealed that it exposed the alleged illegal activities of the app in 2022 and found that a part of the ill-gotten gains were invested in digital assets. Approximately 2,500 dummy bank accounts were identified in connection with the scheme.
Authorities sought information on crypto wallets associated with the case, which were held by cryptocurrency exchanges including Binance, ZebPay, and WazirX. Subsequently, data obtained from these exchanges led to the freezing of funds totaling nearly 90 crore rupees across 70 accounts linked to the scam.
Two individuals identified as the "mastermind," Aamir Khan and Romen Agarwal, have been arrested in connection with the case. The agency has filed a charge sheet and seized, attached, or frozen assets worth a total of 163 crore rupees, including cash, cryptocurrencies, bank account balances, and office premises.
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