By Mark Ackman
The Directorate of Enforcement (ED) of India has made an official announcement that concerns Binance and WazirX.
The largest cryptocurrency exchange in the world and the largest exchange in India are currently facing an investigation launched by the Directorate of Enforcement.
The investigation is related to money laundering activity and it is being run under the Prevention of Money Laundering Act (PMLA) of India.
Directorate of Enforcement has Frozen Bitcoin
The Directorate of Enforcement made an official announcement on Wednesday where they confirmed they are running an investigation against Binance and WazirX.
The regulatory authority has also announced that it has frozen Bitcoins (BTC) practicing the PMLA.
Directorate of Enforcement Investigates E-Nuggets
The officials have confirmed that their investigation directly concerns E-nuggets, a mobile gaming application.
The teams from the Directorate of Enforcement investigating the matter have revealed that an account from WazirX made a huge Bitcoin transfer to Binance.
Therefore, the Directorate of Enforcement is now investigating the matter and until the conclusion of the investigation, it has decided to freeze the transfer of Bitcoin.
The Directorate of Enforcement has confirmed that they have frozen 77.62710139 Bitcoin while the investigation is running.
The regulatory authority has also communicated its actions in a tweet.
Details about E-Nuggets
The Directorate of Enforcement has provided information about the founders of E-Nuggets, which is a major mobile gaming application.
As confirmed, Aamir Khan is the founder E-Nuggets and is the son of Nesar Ahmed Khan.
The regulator added in the public statement that the particular application had been developed for the sole purpose of defrauding people in India.
With the launch of the application, many investors from the cryptocurrency industry in India were lured and defrauded.
Fraud Run through E-Nuggets
The Directorate of Enforcement has revealed that the application had been collecting money from the users and the public promising returns.
The application launched was misleading investors claiming they would receive huge returns for their investments on a daily basis.
This led to a huge number of users storming the application and investing their funds into the scam. Initially, the users were able to withdraw their funds but all of a sudden, the users were unable to withdraw their funds from the application.
After the act, all the data surrounding the profile of the users was wiped off and this information was confirmed from the application servers.
WazirX to Come Under Fire
The Directorate of Enforcement has alleged that the fraudsters used the WazirX application in order to carry out a transfer of funds in Bitcoin to Binance.
Therefore, the Directorate of Enforcement is practicing its rights to carry out the investigation and bring the culprits to justice.
For now, the matter is being looked into and the Indian regulator is getting to the bottom of the matter. However, the latest developments once again put WazirX under great pressure because it had recently faced an investigation by the ED.