India’s Enforcement Directorate (ED) discovered a major fraud involving the Fiewin app, valued at approximately $47.6 million, related to online gaming, which led to the arrest of four individuals connected with the scam.
Fiewin lured victims with promises of easy earnings through online betting. Once hooked, users’ funds were effectively trapped, leaving them unable to withdraw their investments.
The ED’s investigation uncovered digital wallets linked to the scam, with Binance pivotal in tracing the transactions. “Public-private collaborations are crucial in tackling complex financial crimes,” a representative from the ED commented, emphasising the instrumental role Binance’s support played in the investigation.
However, it remains unclear whether the full $47.6 million has been recovered.
Cryptocurrency exchange Binance has assisted the ED as its Financial Intelligence Unit (FIU) provided critical data and analysis that helped the ED trace the illicit funds and identify key players in the scam.
This isn’t the first time Binance has partnered with Indian authorities. As CoinDesk reports, in 2022, Binance and the ED froze millions of dollars in connection with the E-Nuggets gaming app, another case of financial misconduct involving digital assets.
“On September 25, the Indian Enforcement Directorate (ED) arrested four individuals connected to the Fiewin gaming app scam, which resulted in victims losing over $47.6 million,” Binance said. “The Fiewin app lured users into online gambling and gaming with false promises of easy profits. Binance’s Financial Intelligence Unit (FIU) assisted in tracking the funds and uncovering the fraudulent network.”
Binance’s recent cooperation with India’s financial regulator signals a shift in the exchange’s relationship with the country, especially as cryptocurrency remains largely unregulated in India.
Last year, CBI launched Operation Chakra-II to crack down on India’s tech support scams and crypto frauds. This operation involved several other agencies, including the FBI, NCA, Interpol, Microsoft and Amazon. Binance is also embroiled in a tussle with WazirX over ownership of the hacked crypto exchange.
In the News: Prompt injection exploit in ChatGPT macOS app leads to data theft
