Binance Collaborates with Indian Authorities to Nab $10M Scam

The exchange, along with two others, teamed up with local enforcement to uncover a money laundering scheme.

Indian investigator working with Binance to uncover funds.
Created by Kornelija Poderskytė from DailyCoin
  • The Indian regulatory body, Binance, and two other firms recently teamed up to uncover a fraudulent scheme.
  • India has recently shifted its focus towards tightening regulations in the crypto industry.
  • Binance may have sights set on the Indian crypto market reentry.

The Indian crypto market has recently seen strengthened regulatory attention, marked by efforts to ensure compliant operations and promote investor safety. Recently, authorities cracked down on a local fraudulent scheme, E-Nugget, that lured retail investors with disguised gaming activities, ultimately defrauding them of millions of rupees.

Taking enforcement a step further, the authorities have joined forces with crypto exchanges to trace and recoup the stolen funds.

India Cracks Crypto Scam with Binance

Per local reports on Wednesday, May 1, the Indian Enforcement Directorate has seized crypto assets worth close to ₹ 90 crore, valued at approximately $10.5 million, linked to a legal case involving the fraudulent online gaming app E-Nugget.’


The funds were reportedly uncovered in collaboration with exchanges, including Binance, ZebPay, and WazirX, following a months-long investigation into the group’s laundering technique of investing ill-gotten proceeds into digital assets.

According to the Directorate, the perpetrators acquired the stolen assets by duping users before abruptly halting money withdrawals and erasing user data from their servers. They spread the assets across over 70 accounts on various exchange platforms to circumvent authorities.

The report stated that authorities have arrested and are currently holding E-Nugget masterminds Aamir Khan and Romen Agarwal in judicial custody.


Binance’s reported contribution follows recent reports of its renewed focus on reentering the Indian crypto market as a complaint exchange.

Binance India Comeback?

On April 18, 2024, reports emerged of Binance’s possible re-entry into the Indian market, after its services were suspended in January due to a regulatory dispute with the local financial watchdog.

While an official confirmation is pending, the report emphasized that the exchange faces a $2 million penalty for flouting the Indian regulatory guidelines. It is expected to adopt compliant measures upon reentry to overturn its reputation. 

If reinstated, Binance will comply with applicable laws within the jurisdiction, including the local Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. Additionally, the exchange must register with the Financial Intelligence Unit (FIU) of the Indian finance ministry.

Read this article to understand India’s focus on regulations better:
India’s Exchange URL Ban Meets Cool Response from Community 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.