- 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.’
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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.
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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:
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