India’s Crackdown on E-Nugget Scam Yields $10M Seizure from Crypto Exchanges
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The Enforcement Directorate of India has successfully concluded a multi-year operation against the “E-Nugget” scam based in Kolkata, leading to the arrest of the scheme’s orchestrator.
The crackdown also resulted in the seizure of substantial amounts of cash and cryptocurrency. Authorities were able to uncover numerous fake accounts, which facilitated the freezing and subsequent transfer of digital assets to the ED’s official cryptocurrency wallet from various exchanges.
India’s Enforcement Directorate Cracks Down on E-Nugget Gaming Scam
India’s Enforcement Directorate (ED) has successfully dismantled a fraudulent online gaming scheme known as E-Nugget. This operation uncovered a sophisticated scam that lured investors with promises of high returns and commissions from real-money games. The scam abruptly ended, trapping participants’ funds. Launched in 2022, the ED’s investigation revealed the scam’s broad scope, including the investment of stolen funds into cryptocurrencies and the use of nearly 2,500 mule or dummy accounts to launder money.
The operation led to significant seizures and arrests:
- Cash totalling Rs. 19 crore was seized.
- Aamir Khan, the scam’s architect, was arrested and is under judicial custody.
- The ED collaborated with major cryptocurrency exchanges like Binance, Zebpay, and Wazirx to trace and freeze assets connected to the scam, culminating in the freezing of funds worth nearly Rs. 90 crore across 70 accounts.
- These digital assets were then secured in the ED’s own cryptocurrency wallet, ensuring control over the ill-gotten gains and marking a substantial victory in the fight against online financial crimes.
Information gathered from Binance, and other exchanges led to freezing of funds totalling to nearly Rs. 90 crore available in 70 accounts, maintained with Binance, Zebpay and Wazirx holding funds, which were linked to the scam.
ED took possession of the crypto assets and transferred them to their wallet, according to the Indian authority.
