Enforcement Directorate Seizes Rs 90 Crore in Cryptocurrency from Online Gaming App ‘Scam’ Investigation

The Enforcement Directorate (ED) has made a major breakthrough in a money laundering investigation involving an online gaming app ‘scam’ as it has seized funds worth Rs 90 crore from cryptocurrency wallets of exchanges like Binance, ZebPay, and WazirX.

The investigation revolves around an online gaming app called ‘E-Nugget’ that lured users with promises of high returns on investments. However, the app turned out to be a scam, leaving investors stranded without any means to recover their funds.

The ED uncovered the illegal activities of the app in 2022 and found that a portion of the illicit gains was invested in digital assets. The agency identified about 2,500 mule or dummy bank accounts used in the scam.

Following leads from cryptocurrency exchanges like Binance, ZebPay, and WazirX, the ED was able to freeze funds amounting to nearly Rs 90 crore held in 70 accounts linked to the scam. The agency has also arrested two individuals believed to be the masterminds behind the operation and has filed a charge sheet in the case.

In total, the ED has seized, attached, or frozen assets worth Rs 163 crore, including cash, cryptocurrencies, bank account balances, and some offices. This development marks a significant milestone in the fight against financial crimes in the country.

The ED’s relentless efforts to crack down on money laundering activities and online scams demonstrate its commitment to upholding the rule of law and protecting the interests of investors. The agency’s swift action in this case serves as a warning to those who engage in fraudulent activities using digital assets.