A simple gaming mobile application E-Nugget led to the crypto scam of ₹70 crores. Amir Khan who is a 25-year-old founder of the E-Nugget application has been charged for scamming money from people.
Amir Khan had been handed over to the city police on September 24 after being caught by the Kolkata Police in Ghaziabad, Uttar Pradesh, and is supposed to appear in court in Kolkata on October 8 at a lower level of court. Along with Amir, 4 more arrests have been made who were involved in this scamming business. A fully modernized office was set up in the Bidhannagar area but everything was mainly handled from abroad.
The central agency will choose its next course of legal action in this case based on what happens in court on October 8. Meanwhile, ED is working on figuring out what other victims are present because of this scam. This happened in accordance with the Prevention of Money Laundering Act (PMLA), the ED conducted raids on six locations in Kolkata on September 10.
Around 14.53 crore worth of crypto has been seized from the Amirs crypto wallet and along with that 17.32 crore was found in cash at the house of Amir’s father, Naser in Garden Reach society house in Kolkata. It is believed that Amir was turning all the money into cryptocurrency.
At the location the police also found 1952 sim cards which were linked to several bank accounts, along with that bank cards, passbooks were seized by the police.
India froze Bitcoin at Binance for the investigation
Amir had transferred 77.62710139 bitcoins from his wazir account to Binance which is worth ₹12.83 crores and to complete the investigation ED froze them on Binance. The news was shared by ED on Twitter through their official page.
The ED went on to elaborate that the accused allegedly registered a fake account with Wazirx in the name of "Sima Naskar (Proprietor of M/s Pixal Design)" and utilized it to buy cryptocurrency.
How did Amir Khan Scam the crypto users?
The application was created only to defraud the people where initially it gave big rewards and commissions even up to 3000 to 4000% or more. It was a game-based application where you could play games and earn rewards, and to play those games users had to deposit the money onto the platform's wallet. Initially, it allowed users to withdraw money so people started believing it, and more and more money was deposited in the wallet of the app. After some time the withdrawal service got suspended and Amir Khan also removed the admin panel and closed the app with the user's money.
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