ED Freezes WazirX and Ethereum Token Tether’s Cryptocurrencies

https://www.businesstoday.in/crypto/story/ed-freezes-wazirx-and-ethereum-token-tethers-cryptocurrencies-worth-rs-4764-lakh-348671-2022-09-30

ED Freezes WazirX and Ethereum Token Tether’s Cryptocurrencies Worth Rs 47.64 Lakh

Indian law enforcement agency Directorate of Enforcement (ED), on Friday, froze the cryptocurrencies - WazirX’s utility token ‘WRX’ and an Ethereum token Tether ‘USDT’ - equivalent to Rs 47.64 lakhs under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The economic intelligence agency, in a statement, revealed that WazirX’s utility token ‘WRX’ and an Ethereum token Tether ‘USDT’ has been frozen with respect to an investigation being conducted against one Aamir Khan and others relating to the Mobile Gaming Application ‘E-nuggets’.

“Amount equivalent to Rs 47.64 Lakh was found in the wallet of WazirX (Crypto Exchange) belonging to Aamir khan and its associates and the same has been freezed under PMLA,” ED added.

Moreover, earlier during a search operation conducted earlier against accused Khan, Rs 17.32 crore of cash was found and seized from the residential premises. In addition to this, around 85.91870554 Bitcoins, equivalent to $1674255.7 (equivalent to Rs 13.56 crore approx. as per market exchange rate) found in balance in Binance Exchange were also frozen.

ED also said that it has initiated a money laundering investigation based on an FIR dated February 15, 2021, filed under various sections of the Indian Penal Code (IPC) by Park Street Police Station, Kolkata Police, against Aamir Khan & others, based on the complaint filed by Federal Bank authorities, in the court of Learned Chief Metropolitan Magistrate, Calcutta.

According to the ED, Aamir Khan launched a mobile gaming application ‘E-Nuggets’, designed to defraud the public. Further, after collecting a handsome amount from the public, all of the sudden, the withdrawal from the E-Nuggets app was stopped, on the pretext of one and other excuses.

Thereafter, all data including profile information was wiped off from the said App servers.

The domestic law enforcement agency’s investigation also revealed that the accused was transferring the amount earned through the E-nuggets app by using Crypto Currency Exchange. ED also stated that further investigation is under progress.