The crackdown comes after the arrest and charging of two individuals, Aamir Khan and Romen Agarwal, linked to the fraudulent scheme. Operating under the guise of a gaming platform, E-Nugget enticed investors with the allure of substantial returns, only to abruptly vanish once investments were made, leaving investors unable to retrieve their funds. An investigation revealed the perpetrators utilized 2,500 dummy bank accounts to orchestrate the scam, with a portion of the funds funneled into cryptocurrencies.
The ED’s probe, aided by information from exchanges like Binance, ZebPay, and WazirX, led to the freezing of nearly $10.7 million in funds associated with the scam. Additionally, the agency seized assets worth approximately $19 million, including cash, cryptocurrencies, bank balances, and physical assets. Meanwhile, the Central Bureau of Investigation (CBI) initiated a nationwide search related to a fake cryptocurrency mining scam. The CBI’s actions targeted two companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, in connection with the HPZ token app, which lured investors with false promises of crypto-mining hardware rentals and lucrative returns.
The crackdown underscores India’s concerted efforts to tighten regulations within the cryptocurrency space amid concerns of potential misuse for money laundering. The nation’s Financial Intelligence Unit (FIU) has emphasized the need for cryptocurrency service providers to adhere to strict regulatory standards, including registration with FIU-India and compliance with the Prevention of Money Laundering Act (PMLA), 2002. These measures reflect India’s commitment to maintaining financial integrity and combating illicit activities within the burgeoning crypto market.
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