India’s Directorate of Enforcement (ED) has declared its multi-year crackdown on the “E-Nugget” scam in Kolkata successful. The operation, initiated in 2022, targeted a major online gaming app scam known as E-Nugget. The scam lured users with promises of high returns on investments through real-money games and commissions but ceased operations post-investment, leaving users without access to their funds.
During the investigation, ED uncovered nearly 2500 dummy bank accounts used in the scam, leading to the seizure of approximately Rs. 19 Crore in cash. The mastermind behind the scam, Aamir Khan, was arrested and is currently in judicial custody.
As part of the operation, ED sought details of crypto wallets from various exchanges, including Binance, Zebpay, and Wazirx. Information obtained from these exchanges led to the freezing of approximately Rs. 90 crore in funds across 70 accounts linked to the scam. The frozen crypto assets were subsequently transferred to the ED’s crypto wallet.
The successful operation against the E-Nugget scam highlights the effectiveness of India’s Enforcement Directorate in combating financial fraud in the digital space. By uncovering dummy bank accounts and freezing crypto assets linked to the scam, the authorities have taken significant steps to protect consumers and uphold financial integrity. This outcome underscores the importance of regulatory oversight and enforcement actions in safeguarding against fraudulent activities in the crypto industry.
