According to a press statement issued on Friday, India’s Enforcement Directorate (ED) has requested that 150.22 bitcoins, worth about $2.5 million today, be frozen as part of a money-laundering investigation involving the gaming app E-Nuggets. The ED says that the total value of the assets that have been frozen or taken away as a result of the investigation is $8.4 million.
The complaint was submitted to authorities in India’s eastern city of Kolkata in February 2021 against Aamir Khan, the app’s designer, as well as other individuals. This investigation is in response to that complaint.
The regulatory body asserts that Khan and others started E-Nuggets with the intention of obtaining money from the general public in exchange for rewards on commissions, but that they subsequently deleted all of the data. Since the beginning of the inquiry, Khan’s contact information has been completely unknown.
The ED said that “several accounts” (more than 300 to be exact) were used to “launder the money” and that Khan moved part of the money offshore by using a cryptocurrency exchange. In the beginning of this year, the Binance account containing as much as 77.6 bitcoins, which had a value of about $1.5 million at the time, was locked. At the time, Binance said that the accounts had been frozen because the ED had asked them to.
The crimes related to the cryptocurrencies in India indicate that the exchange violated India’s laws that require financial transactions to be traceable, even if they moved the coins to different accounts. Some signs also showed that Indians who used Binance’s bitcoin trading platform to change their money may have been involved in the alleged fraud scheme.
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