E-nuggets case | ED searches Binance crypto exchange wallet IDs, freezes Bitcoins worth Rs 22.82 crore

ED had, in October, frozen Bitcoins worth Rs 7.12 crore in connection to the case (Representative image: Reuters)

The Enforcement Directorate on November 11 said it has searched wallet or user IDs associated with Binance crypto exchange, as part of its ongoing probe related to mobile gaming app E-nuggets.

During the search operation, the federal investigation agency froze 150.22 Bitcoins, worth Rs 22.82 crore, as per an official release. The action was taken under provisions of the Prevention of Money Laundering Act (PMLA), it added.

The ED has, notably, registered a money laundering case against E-nuggets and its promoters, based on an FIR which was filed in Kolkata in February 2021.

Aamir Khan, son of businessman Nesar Ahmed Khan, launched the mobile gaming application that was designed to defraud the public, the agency has alleged.

The app initially rewarded users and allowed to withdraw balance hassle-free. "After collecting sizeable amount from the public, all of the sudden,
the withdrawal from the said app, was stopped, on one pretext or the other," the ED said.

"Thereafter, all data including profile information was wiped off from the said app servers," the agency added, noting that it was then when the users understood the ploy.

"It was revealed during investigation that multiple accounts (more than 300) were used to launder the money. Proceeds were also used to purchase crypto currencies," the ED further said.

In September, the agency had found and seized Rs 17.32 crore in cash from the residential premises of Aamir Khan. It had also froze 85.91 Bitcoins equivalent to around Rs 13.56 crore in Binance cryto exchange.

The ED further froze an amount of Rs 5.47 crore as found in the bank account of Khan and his accomplice.

In October, the investigators also seized cash amounting to Rs 1.65 crore from the residential premises of Romen Agarwal, who was arrested for alleged involvement in the domestic and international transactions of illicit wealth. The agency had also froze Bitcoins worth Rs 7.12 crore.

According to the ED, an amount of "Rs 68.42 crore has been seized and frozen in total" has been seized and frozen in the investigation conducted in E-nuggets case so far.