Crypto Scam Alert: India’s Financial Regulators Seize $30M in Crackdown

India’s financial watchdog, the Enforcement Directorate (ED), strikes hard on crypto scams, uncovering two major fraudulent schemes in the country, and leaving investors in distress.

E-Nugget Scam: Millions Seized, Accused Arrested

In a significant blow to the infamous ‘E-Nugget’ scam, the ED seizes a colossal INR 90 crores (approximately $10.7 million) worth of cryptocurrencies. Two prime suspects, Aamir Khan and Romen Agarwal, have been apprehended in connection with the scam, which lured investors with false promises of high returns.

ED, Kolkata led a successful operation against a major “online gaming app scam” known as “E-Nugget”. The E-Nugget app, masqueraded as a gaming platform, promised users high returns on their investments. Crypto assets which were taken into possession of ED are transferred into…

— ED (@dir_ed) April 30, 2024

According to the FIR filed with the Park Street Police Station in Kolkata, the fraudulent scheme operated under the guise of a gaming platform, enticing users with lucrative investment prospects. However, once funds were deposited, the platform vanished, leaving investors empty-handed.

Nationwide Hunt for Fake Crypto Mining Scam Unveiled by CBI

Simultaneously, the Central Bureau of Investigation (CBI) initiates a nationwide search targeting a counterfeit cryptocurrency mining operation. Under the guise of the HPZ token app, two companies, Shigoo Technology Private Limited and Lillian Technocab Private Limited, allegedly deceived investors with fake promises of profitable crypto mining ventures.

Operating akin to a Ponzi scheme, the fraudsters manipulated investors into believing they were investing in crypto-mining hardware rentals, leveraging a network of 150 bank accounts to channel funds. Ultimately, the illicit gains were laundered out of India using cryptocurrencies.

India’s Crypto Crackdown: A Stringent Regulatory Landscape

These crackdowns mark India’s stringent stance on monitoring the cryptocurrency sector. With the Financial Intelligence Unit (FIU) raising alarms over potential crypto-related money laundering, the nation mandates all cryptocurrency service providers to register with FIU-India and adhere to the Prevention of Money Laundering Act (PMLA), 2002.

Key Takeaways:

• ED Seizes INR 90 Crores: The Enforcement Directorate seizes a staggering INR 90 crores in cryptocurrencies, dealing a severe blow to the e-Nugget scam.
• Nationwide CBI Search: The Central Bureau of Investigation conducts a nationwide hunt targeting a counterfeit cryptocurrency mining operation, shedding light on the extent of crypto fraud in India.