Kolkata: ED conducts operation against online gaming app scam 'E-Nugget'
Apr 30, 2024
Kolkata (West Bengal) [India], April 30 : The Kolkata unit of the Directorate of Enforcement (ED) carried out a 'successful operation' against a suspected online gaming app scam known as 'E-Nugget', ED said in a release on Tuesday.
Following the operation, Rs 19 crore were seized and funds worth of Rs 90 crore in 70 accounts were frozen. The mastermind, Aamir Khan, was also arrested.
According to allegations, the E-Nugget app, which masqueraded as a gaming platform, promised users high returns on their investments.
https://x.com/dir_ed/status/1785272995738775834
"Offering a series of enticing games designed for real-money wagering and promising users hefty commissions, the app painted a picture of a golden investment opportunity. However, this facade quickly fell apart once investments were made, with the app going dark and leaving investors stranded without a way to reclaim their funds," the ED release stated.
The unravelling began in 2022 when ED exposed the operation and discovered that part of the ill-gotten gains were invested in digital assets. During the investigation, nearly 2500 mule/dummy bank accounts were identified, and the same were analysed.
The ED said that it seized cash worth of Rs 19 crore during searches. The mastermind of the scam, namely Aamir Khan, was also arrested and is presently in Judicial Custody.
ED sought details of a number of crypto wallets with several exchanges notably Binance, ZebPay and WazirX. Information gathered from Binance, and other exchanges led to freezing of funds totalling to nearly Rs 90 Crore available in 70 accounts, maintained with Binance, ZebPay and WazirX holding funds, which were linked to the scam. These crypto assets were subsequently taken into possession of ED and transferred into the Crypto wallet of ED, the release added.
