India Cracks Down on $48M Crypto Fraud in Fiewin Gaming App With Binance Help
India Cracks Down on $48M Crypto Fraud in Fiewin Gaming App With Binance Help
Kevin Helms
By Kevin Helms
Wed Oct 2 21:30:27 EST 2024
Indiaâs Enforcement Directorate has exposed a massive $48 million scam linked to the online gaming app Fiewin, connected to Chinese nationals. Following an in-depth investigation, an equivalent of about $3 million has been frozen in accounts tied to these individuals. The scam lured users with quick earning schemes but blocked fund withdrawals. The investigation also involved Binanceâs assistance, revealing complex cryptocurrency transfers to China.
ED Exposes âč400 Crore Scam Involving Online Gaming App Fiewin
Indiaâs Enforcement Directorate (ED), a specialized financial investigation agency under the Department of Revenue, Ministry of Finance in India, has taken action against a major âč400 crore (approximately $48 million) fraud tied to an online gaming app, Fiewin, which was linked to Chinese nationals.
The investigation, reported by NDTV, has resulted in the freezing of âč25 crore in accounts connected to these Chinese individuals. The ED, with support from cryptocurrency exchange Binance, has been investigating the app, which allegedly lured users with promises of quick earnings. However, the app reportedly prevented users from withdrawing funds once substantial amounts were accrued. As complaints mounted, the case was escalated to the ED, which specializes in handling economic crimes.
Several individuals were arrested for their roles in facilitating the scam, including Indian nationals Arun Sahu, Alok Sahu, and software engineers Chetan Prakash and Joseph Stalin.
According to EDâs findings, funds collected from gamers were funneled through ârecharge personsâ who converted the money into cryptocurrency, which was then transferred to Chinese nationalsâ crypto wallets. Binanceâs statement revealed that the fraud involved a sophisticated network using privacy-focused messaging and obfuscated financial transactions to avoid detection. The probe has traced nearly âč400 crore to eight Binance wallets, with authorities continuing efforts to expose the full extent of this cross-border fraud.
What do you think about this large-scale online gaming scam involving cryptocurrencies and Chinese nationals? Let us know in the comments section below.
