- India’s enforcement authority has seized approximately $10.5 million from an online scam app, E-Nuggets, with the assistance of major cryptocurrency exchanges.
- The scam app lured customers with high return promises, posing as a gaming platform, but shut down operations once investments were made.
- Binance, the world’s largest cryptocurrency exchange, is preparing to re-enter the Indian market after agreeing to pay a $2 million fine.
India’s enforcement authority cracks down on a crypto scam, seizing $10.5 million with the help of major exchanges, while Binance prepares to re-enter the Indian market.
India’s Enforcement Authority Busts E-Nuggets Scam
India’s enforcement authority has seized roughly $10.5 million from an online scam app called E-Nuggets. The crackdown involved major cryptocurrency exchanges like Binance, ZebPay, and WazirX, which helped identify and block the crypto wallet accounts linked to the scam. The E-Nuggets app allegedly attracted customers with promises of high returns on investments, posing as a gaming platform. However, once the investments were made, the app shut down operations, effectively trapping the investors’ funds.
Investigation and Seizure
The investigation into the E-Nuggets app began in 2022 when suspicious transactions involving digital assets were noted. This led to the uncovering of around 2,500 dummy bank accounts and the seizure of assets worth over $19.5 million, which included cash, cryptocurrencies, account balances, and office properties. The brains behind the scam, Aamir Khan, and his accomplice Romen Agarwal, have been arrested and are currently in custody.
Binance’s Return to the Indian Market
Binance, the world’s largest cryptocurrency exchange, is preparing to re-enter the Indian market after agreeing to pay a $2 million fine. The fine comes as a resolution to compliance issues that led to Binance’s removal from the Apple Store in India earlier this year. Following the fine, Binance plans to re-establish itself as an FIU-registered entity, fully compliant with Indian regulations, including anti-money laundering and taxation laws.
Conclusion
The busting of the E-Nuggets scam highlights the importance of regulatory oversight in the cryptocurrency industry. As Binance prepares to re-enter the Indian market, the focus on compliance with local regulations underscores the need for exchanges to operate transparently and responsibly. This development serves as a reminder for investors to exercise caution when dealing with digital assets.
