Binance Collaborates with Indian Authorities to Nab $10M Scam
The E-Nugget app, disguised as a gaming platform, promised users high returns on investments. Assets worth more than ₹ 163 crore, consisting of cash, cryptocurrencies, account balances, and office space, have been attached, seized, or frozen in the case so far
According to local reports on Wednesday, May 1, the Indian Enforcement Directorate has seized cryptocurrency assets worth around ₹ 90 crore, valued at approximately $10.5 million, linked to a legal case involving the fraudulent online gaming app E-Nugget.
The E-Nugget app, disguised as a gaming platform, promised users high returns on investments. Assets worth more than ₹ 163 crore, consisting of cash, cryptocurrencies, account balances, and office space, have been attached, seized, or frozen in the case so far.
The funds were reportedly discovered in cooperation with exchanges, including Binance, ZebPay, and WazirX, following a months-long investigation into the group's laundering technique of investing ill-gotten proceeds into digital assets.
According to the Directorate, the perpetrators obtained the stolen assets by deceiving users before suddenly halting money withdrawals and erasing user data from their servers. They spread the assets across over 70 accounts on various exchange platforms to evade authorities.
The report stated that authorities have arrested and are currently holding E-Nugget masterminds Aamir Khan and Romen Agarwal in judicial custody.
Binance's reported contribution follows recent reports of its renewed focus on reentering the Indian crypto market as a complaint exchange.
On April 18, 2024, reports emerged of Binance's possible re-entry into the Indian market, after its services were suspended in January due to a regulatory dispute with the local financial watchdog.
While an official confirmation is pending, the report emphasizes that the exchange faces a $2 million penalty for flouting Indian regulatory guidelines. It is expected to adopt compliant measures upon reentry to reverse its reputation.
If reinstated, Binance will comply with applicable laws within the jurisdiction, including the local Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. Additionally, the exchange must register with the Financial Intelligence Unit (FIU) of the Indian finance ministry.
