02 May

The Enforcement Directorate (ED), an Indian law enforcement organization, used cryptocurrency exchanges like Binance, ZebPay, and WazirX to assist them take 90 crores ($10.5 million) from an online scam software called E-Nuggets.

The Hindu said that the cryptocurrency E-Nugget, an online gaming software, had $10 million worth of cryptocurrency stashed in 70 separate cryptocurrency wallet accounts on three different cryptocurrency exchanges.

To move the cryptocurrency holdings to the agency's wallet and block the wallet addresses, the ED got in touch with these exchanges.

The E-Nugget app allegedly offered consumers high returns on investment while passing for a gaming platform, according to the ED's findings.

With a number of enticing real-money games that were intended for users to wager on and earned substantial commissions, the app offered a profitable investment option. But as soon as money was transferred, the app crashed, trapping investors and preventing them from getting their money back.

Properties worth more than 163 crores ($19.5 million) have been attached and confiscated by the agency, along with money, bitcoin, account balances, and office space.

When some of the company's cash were invested in digital assets in 2022, the hoax app initially came to light. The ED probe discovered 2,500 fake bank accounts worth 19 crores ($2.2million)  worth of cash was found. 

Aamir Khan, the alleged mastermind of the plan, was detained after being apprehended with his accomplice Romen Agarwal.

Since digital assets were being used to move the money, law enforcement was able to track it, freeze it, and take it.

Despite the fact that detractors frequently attempt to link cryptocurrency use to money laundering, the blockchain's structure makes it exceedingly difficult to wash money once it has been recognized. Cryptocurrency exchanges have found and blocked money connected to illegal activity on multiple occasions.

The Bitfinex hack in 2016 is the most well-known illustration of transparency and the reasons it is challenging to launder money using digital assets.

May 2024, Cryptoniteuae

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