ED Cracks Down on ‘E-Nugget’ Gaming Scam, Seizes Crypto Assets. Full Story Inside.

Kolkata: The Enforcement Directorate (ED) in Kolkata has conducted a successful raid against a fraudulent online gaming application known as “E-Nugget,” which was deceiving users by promising unusually high returns on investments. According to the ED, this application presented itself as a harmless gaming platform, but its real intention was to siphon off money from unsuspecting players.

Modus Operandi of the Scam

E-Nugget operated by luring people with the allure of easy money. The app was freely available for download, after which users were encouraged to deposit money into their app-based wallets. The enticing hook was the promise of receiving a high commission — reported to be between three to four thousand percent — simply for keeping money in the app and participating in its games.

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Initially, users received substantial rewards deposited directly into their bank accounts soon after they started using the app. This early success was a ploy to build trust and encourage further deposits. Games available on the app, such as online lotteries, seemed legitimate and allowed players to win money, further convincing them of the app’s authenticity.

However, the scheme took a fraudulent turn when, after some time, all withdrawal options were abruptly disabled. Moreover, users found that their bank account details and personal information had been collected by the app developers. To complete their fraud, the scammers then erased all admin contacts and server application details, essentially wiping any trace of their operations and leaving the users with no way to retrieve their invested funds.

ED, Kolkata led a successful operation against a major “online gaming app scam” known as “E-Nugget”. The E-Nugget app, masqueraded as a gaming platform, promised users high returns on their investments. Crypto assets which were taken into possession of ED are transferred into…

— ED (@dir_ed) April 30, 2024

Latest Developments

In a post on X, the ED has announced that it has managed to intercept the crypto assets that were amassed through this scam. These assets are now securely held in the ED’s Crypto Wallet, preventing the scammers from accessing or transferring them further. Users are advised to exercise caution and perform due diligence before investing in any online platforms that promise unusually high returns. This incident also highlights the increasing role of digital and financial regulators in combating cybercrime and protecting consumers from online fraud.

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