Enforcement Directorate confiscated Rs. 90 Crore funds stored in Binance, ZebPay, WazirX wallets

The Enforcement Directorate on Tuesday said it is in possession of funds worth Rs. 90 crore held in cryptocurrency wallets on exchanges such as Binance, ZebPay and WazirX as part of a money laundering investigation linked to an online gaming app “scam”.

“These crypto assets were subsequently seized and transferred to ED’s crypto wallet,” the federal agency said in a statement.

The investigation concerns an online gaming app “scam” called “E-Nugget” that masquerades as a gaming platform and “promises” users high returns on their investment.

An FIR lodged at Kolkata’s Park Street police station became the basis of the ED case, which was registered under the provisions of the Prevention of Money Laundering Act (PMLA).

The app offers a series of enticing games designed for real-money betting, promises users hefty commissions and paints a picture of a “golden investment” opportunity, ED said.

However, that façade quickly crumbled after investments were made, with the app going dark and leaving investors stranded with no way to get their funds back, it said.

The ED said it uncovered the alleged illegal activities of the app in 2022 and found that a portion of the ill-gotten gains were invested in digital assets.

About 2,500 mule or shell bank accounts have been identified, the release said.

The agency said it sought details of crypto wallets involved in this case and held with cryptocurrency exchanges such as Binance, ZebPay and WazirX.

“Information gathered by Binance and other exchanges led to the freezing of funds totaling close to Rs 90 crore held in 70 accounts maintained with Binance holding funds, ZebPay and WazirX, which were linked to the fraud,” it said. .

The agency has arrested two people – the mastermind Aamir Khan and Romain Agarwal and has also filed a charge sheet in the case.

He has seized, attached or frozen a total of Rs. 163 crore worth of assets in this case include cash, cryptocurrencies, bank account balances and some offices.