The Indian Law Enforcement Authority (ED) claims that E-Nuggets, positioning itself as a gaming platform, guaranteed users a high return on investment. The creators of E-Nuggets offered users real money games with large commissions. However, when receiving users' money, the creators of the application abruptly stopped withdrawing money and deleted all client data from the servers. As a result, investors' funds were stuck, and people could not return the invested money.
The application came to the attention of the police two years ago. The investigation revealed 2,500 bank accounts with funds in the amount of 19 crores ($2.2 million). Now, property worth almost ten times more has been arrested and frozen in the case. This includes cash, cryptocurrency, bank account balances, and office space.
Given that the money was transferred using cryptocurrencies, law enforcement agencies managed to track the transactions and then confiscate them. To do this, the Indian police had to resort to the help of Binance, ZebPay and WazirX trading platforms, which blocked the necessary addresses. The alleged organizer of the scheme, Aamir Khan, was arrested along with his partner Romen Agarwal. Both are now in custody.
During the investigation of the E-Nuggets case, the Indian authorities froze $2.5 million in bitcoins on Binance back in 2022, citing the Money Laundering Prevention Act (PMLA).