The Enforcement Directorate has been working very proactively since the last few months and is unearthing many scams by taking action at different places in the country. The Enforcement Directorate is now also eyeing the scams committed by Crypto. Kolkata businessman Aamir Khan son Nassar Ahmed Khan has been arrested during Enforcement Directorate proceedings on sugar loan application. Aamir had created a game application called E-Nuggets , through which Aamir scammed people of crores of rupees.
Aamir launched his application in 2022. After downloading this application and entering your details, you had to provide bank account details and then you could deposit money in it. You used to see this money in your wallet but it used to be in the account of Aamir or his company. Aamir’s application soon collected crores of rupees by luring him to pay hefty interest on keeping his money in the wallet and giving big money instead of referring people. In this application, ways to earn money for playing some games were also given. Because at this time the time of Corona was going on and people wanted some means of earning by working from home, so this application soon reached more people.
It was said that the consumer can withdraw his money at any time and in the beginning people earned and withdrawn money in it. After some time, maybe Aamir felt that now a lot of money has been collected or maybe due to increasing liability, soon he stopped getting money from this application. After this, all the information about the admin and the application was cleared from the server. On 15 February 2021, a case was registered against Aamir under the Federal Bank’s FIR at Park Street Police Station Kolkata. Acting on this, the Enforcement Directorate raided the premises of Aamir and recovered a large number of Indian currency.
According to the press release issued by the Enforcement Directorate on September 28, Indian currency worth Rs 17.83 crore has been recovered so far from Aamir’s hideouts. Proceeding further, the Enforcement Directorate investigation revealed that Amir created a fake account on Indian crypto exchange WazirX in the name of Seema Naskar (prop M/S Pixal Design) and then bought bitcoins after depositing money here. The bitcoin was later ported to the Binance exchange. Enforcement Directorate has blocked 77.62710139 bitcoins, its value is being told 12.83 crores. Enforcement Directorate is currently taking its action in this matter.
Enforcement Directorate has already closed the account of WazirX which was later opened. In this case, there was a case of some Chinese application creating an account on WazirX and sending money to China by converting it into crypto. The Enforcement Directorate is taking this action under the Money Laundering Act.
Meanwhile, the big question is how can crypto exchanges stop such scams? Although the opening of new accounts on exchanges has almost stopped since crypto transactions and profits have been taxed heavily in India, but the trade on old accounts is almost zero. The exchange opens an account and offers its facilities only after completing the very arduous process of KYC. In such a situation, some people still do this kind of work by dodging security? Enforcement Directorate and exchanges should jointly put in place such a system so that such scams do not happen on exchanges. There is a need to make KYC more stringent. The limit for sending money from the account to the exchange also needs to be set. Right now there is a ban on withdrawing your crypto from crypto exchanges and the reason for this is also people who make money in a wrong way and resort to crypto to hide it.
In this case of Aamir Khan, people were duped by Indian currency and then crypto was used to hide the money of that fraud. The security of the exchange was breached and the money was put in by creating the wrong account and the crypto was sent to the foreign exchange. The biggest loss in all this is crypto. By taking the help of these cases, the Indian government wants to rein in crypto in India. What about the cash that Aamir got? What will be the action of the Reserve Bank or the Indian currency for that? The answer is nothing. Attempts will be made to falsify only by describing crypto as illegal and an easy medium for money laundering.
