Binance Assists India in Uncovering $47.6M Gaming Scam

In a recent partnership between public and private sectors, Binance, the largest cryptocurrency exchange in the world, reported its assistance to Indian authorities in dismantling a supposedly legitimate online gaming application that deceived users out of over Rs 400 crore ($47.6 million).

As detailed in a blog post, the Binance Financial Intelligence Unit (FIU) offered essential support that empowered India’s Enforcement Directorate (ED) to trace the funds embezzled by the operators of the gaming app Fiewin and reveal the intricate network behind it.

Binance Aids ED in Fraud Investigation

Fiewin’s operators promoted the app as a platform enabling users to earn money through mini-games. Users could set up accounts and engage in various activities within the app by funding their balances through multiple payment options. However, once users’ accounts grew substantial funds, the app ceased withdrawals, eventually redirecting the money through a backdoor to several crypto wallets.

The ED initiated an investigation into the Fiewin app following numerous complaints from victims across the country who reported losses due to the operation. Throughout the inquiry, the Directorate uncovered that Fiewin was associated with a transnational criminal organization that utilized various tactics to mask the flow of illicit finances, including money mule bank accounts and numerous crypto wallets.

The Indian authorities also found that the scheme had illicitly taken millions of Indian rupees from users, creating a convoluted transaction network to hinder detection and traceability of the funds. With Binance’s assistance, the ED successfully tracked the laundering of money across numerous crypto wallets and revealed the expansive network behind the scam.

“Collaborations between public and private sectors are essential for addressing intricate financial crimes. Binance’s specialized investigation team exemplifies how private firms can effectively partner with law enforcement. In this instance, they provided us with analytical support that significantly aided the investigation,” remarked a representative from the ED.

Four Suspects Arrested

The investigation not only exposed the scam network but also culminated in the arrest of four individuals who were key players in facilitating the scheme and collaborating with the operators of the Fiewin app. It was found that the fraudsters communicated via privacy-centric messaging apps while operating from various locations.

Binance has indicated that the case remains active, with the ED eager to unveil the criminal network orchestrating the fraud scheme and to fully reveal the extent of Fiewin’s operations.