India's financial watchdog, the Enforcement Directorate (ED), is striking hard against crypto scams, revealing two major fraudulent schemes in the country and plunging investors into distress.
Electronic nugget scam: millions of people seized and arrested
Dealing a major blow to the infamous 'E-Nugget' scam, the ED seizes a whopping sum of INR 90 crore (around $10.7 million) worth of cryptocurrencies. Two main suspects, Aamir Khan and Romen Agarwal, were nabbed in connection with the scam, which lured investors with false promises of high returns.
ED, Kolkata successfully carried out an operation against a “major online gaming app scam” known as “E-Nugget”. The E-Nugget application, disguised as a gaming platform, promised users high returns on investment. Crypto assets that have been taken into ED’s possession 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, attracting users with lucrative investment prospects. However, once the funds were deposited, the platform disappeared, leaving investors empty-handed.
Nationwide hunt for fake cryptocurrency mining scams exposed by CBI
Simultaneously, the Central Bureau of Investigation (CBI) launches a nationwide search targeting a counterfeit cryptocurrency mining operation. Under the guise of HPZ token application, two companies, Shigoo Technology Private Limited and Lillian Technocab Private Limitedallegedly misled investors with false promises of profitable crypto mining ventures.
Operating like a Ponzi scheme, the fraudsters manipulated investors into believing they were investing in leasing crypto mining hardware, exploiting a network of 150 bank accounts to route the funds. Ultimately, the illicit gains were laundered out of India using cryptocurrencies.
India's Crypto Crackdown: A Strict Regulatory Landscape
These crackdowns demonstrate India's strict stance on monitoring the cryptocurrency sector. As Financial Intelligence Unit (FIU) sounds alarm over possible crypto-related money laundering, country requires all cryptocurrency service providers to register with FIU-India and adhere to the Prevention of Money Laundering Act (PMLA) of 2002.
Key takeaways:
- ED Seizes INR 90 Crores: The Enforcement Directorate seizes a staggering INR 90 crore worth of cryptocurrencies, dealing a major blow to the e-Nugget scam.
- Nationwide CBI Search: The Central Bureau of Investigation is conducting a nationwide search targeting a counterfeit cryptocurrency mining operation, highlighting the extent of crypto fraud in India.