The Enforcement Directorate on Tuesday mentioned it has taken possession of funds value Rs. 90 crore, stored in cryptocurrency wallets of exchanges like Binance, ZebPay and WazirX, as a part of a cash laundering investigation linked to an internet gaming app “rip-off”.
“These crypto property have been subsequently taken into possession and transferred into the crypto pockets of the ED,” the federal company mentioned in an announcement.
The investigation pertains to an internet gaming rip-off app “rip-off” known as ‘E-Nugget’ that masqueraded as a gaming platform and “promised” customers excessive returns on their investments.
An FIR filed on the Park Avenue Police Station of Kolkata turned the premise of the ED case that was registered beneath the provisions of the Prevention of Cash Laundering Act (PMLA).
The app supplied a collection of engaging video games designed for real-money wagering promised customers hefty commissions and painted an image of a “golden funding” alternative, the ED mentioned.
Nonetheless, this facade rapidly fell aside as soon as investments have been made with the app going darkish and leaving buyers stranded and not using a method to reclaim their funds, it mentioned.
The ED mentioned it uncovered the alleged unlawful actions of the app in 2022 and located that part of the ill-gotten good points was invested in digital property.
About 2,500 mule or dummy financial institution accounts have been recognized, it mentioned.
The company mentioned it sought particulars of crypto wallets concerned on this case and held with cryptocurrency exchanges like Binance, ZebPay and WazirX.
“Info gathered from Binance and different exchanges led to the freezing of funds totalling almost Rs 90 crore accessible in 70 accounts, maintained with Binance, ZebPay and WazirX holding funds, which have been linked to the rip-off,” it mentioned.
The company had arrested two folks — “mastermind” Aamir Khan and Romen Agarwal and likewise has filed a cost sheet within the case.
It has seized, connected or frozen a complete of Rs. 163 crore value of property on this case that includes money, cryptocurrencies, checking account balances, and a few places of work.
