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India blacklists more tokens amid Binance investigation

India
TL;DR Breakdown
  • India blacklists more tokens amid Binance investigation
  • ED claims that E-nuggets scammed its users
  • Indian regulators are going after exchanges

India has announced through the Directorate of Enforcement that it has frozen two more cryptos under its money laundering prevention laws. According to the official statement, the digital assets listed as suspended for trading included Bitcoin and stablecoin Tether. This action was decided amid the investigation of E-nuggets, a company that produces gaming applications for users. In the same announcement, the body mentioned that it had frozen more than 80 Bitcoin tied to renowned exchange Binance.

ED claims that E-nuggets scammed its users

The Directorate of Enforcement acts as the economic agency that checks several excesses of financial firms across the country, including money laundering activities. In its announcement, the exchange confirmed that the three assets that it froze, including the WazirX token, were said to be about $10,000. The agency mentioned that it started an investigation into one of the executives of the gaming app Aamir Kahn and some others bordering on FIR, submitted in February 2021.

According to the authority, the app was created to defraud the general public by stealing their assets. The statement said that after users deposited their funds on the app, they could not withdraw them. After several inquiries into the issues surrounding withdrawals, the traders were greeted with mere excuses.

Indian regulators are going after exchanges

In the statement that the agency released, the executives of the gaming platform were able to withdraw the said funds that were accumulated from several investors across India. In the details, it mentioned that they were able to facilitate the withdrawal through an exchange. The statement also said that the WazirX account of the executives had the said $10,000 in it. Adding to that information, the agency claimed that police in India raided the executives’ premises and recovered funds of about $392,884 from them.

The authorities learned that the executives also maintained funds of about $1 million in a Binance account that had been frozen. Although there have been claims of Binance owning WazirX, the company has claimed that the acquisition was not completed, and the company is still owned by its present owners. India’s regulators have been working tirelessly against illicit activities over the last few months. Some months ago, the agency froze WazirX assets. However, the assets were released some days ago. Presently, the agency is withholding funds belonging to Valud, Coinswitch Kuber.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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