Indian law enforcement agency, the Enforcement Directorate (ED), with the help of Binance, ZebPay, and WazirX crypto exchanges, tracked funds linked to the E-Nugget scam app.
A report by the Hindu indicates that E-Nugget, an online gaming application, maintained cryptocurrency holdings equivalent to $10 million in seventy distinct wallet accounts distributed across three cryptocurrency exchanges.
The ED contacted these exchanges to block the wallet addresses and transmit the crypto assets to the agency’s wallet.
In its report, the ED made allegations that the E-Nugget application, masquerading as a gaming platform, purportedly provided consumers with substantial returns on investment.
Designed for users to wager on, the application provided several enticing real-money activities that offered substantial commissions and constituted a lucrative investment opportunity. Investors were, however, stranded and unable to recover their funds once the application went inactive following their investment.
Including cash, cryptocurrency, account balances, and office space, the agency has seized and affixed assets worth more than 163 crores ($19.5 million).
Initially detected in 2022, the fraudulent application received attention due to investing some of the organization’s funds in digital assets. An investigation by the ED uncovered 2,500 fictitious bank accounts containing currency worth 19 crores ($2.2 million).
At this time, both Aamir Khan and his accomplice Romen Agarwal remain in custody as the presumed masterminds of the conspiracy.
Due to using digital assets for money transfers, law enforcement agencies could track, halt, and subsequently seize the funds.
Despite frequent attempts by detractors to link cryptocurrencies with money laundering, the blockchain’s inherent characteristics render the process of laundering funds exceedingly arduous once they have been located. On multiple occasions, cryptocurrency exchanges have traced and frozen funds associated with illicit activities.
The 2016 Bitfinex breach is the most prominent illustration of transparency and why money laundering with digital assets is so difficult.
Destroyers seized 119,756 Bitcoin from the cryptocurrency exchange. In 2022, however, the individuals responsible for the scheme were apprehended and apprehended while attempting to launder the funds.
