Binance, the largest crypto exchange in the industry has helped Indian authorities trace $47.6 million from a trending game project which scammed its players.
Binance announced this development stating how it helped India’s Enforcement Directorate recover millions from an online gaming platform Fiewin.
The investigation and detection of the loot was carried out by Binance’s Financial Intelligence Unit which provided crucial information that led to the crackdown on the culprits and the arrest of four of them.
The Online game in question is known as Fiewin an Android application that allows users to play wagering games and earn cash.
Binance in its announcement explained the ulterior motive of the people behind the game and how they used it to scam people.
“The Fiewin app lured users into online gambling and gaming with false promises of easy profits”, Binance said.
Binance’s team in their investigation found that the flow of funds was distributed to various crypto-wallets linked to a global crypto exchange.
At the moment it has not been revealed whether the traced $47.6 million has been recovered or not.
Binance explained that the case was still ongoing and that they would continue to assist the Indian Enforcement Directorate in tracking down the broader criminal network behind the fraud.
India’s Enforcement Directorate Reacts
The Indian Enforcement Directorate reacted to the statement by Binance explaining the importance of the public and private sectors working together to combat Financial crime.
A spokesperson for the Indian Agency admitted that Binance’s role was crucial in untangling the complex network behind the Fiewin scam.
The Fiewin Scam
Fiewin is an online gaming app where users can play mini-games and earn money in return. The platform was initially promoted as a legitimate project until players noticed that once their earnings reached a certain amount their accounts would be frozen making them unable to withdraw funds.
Several victims of the gaming app reported to the police which took the case to India’s Enforcement Directorate after receiving multiple complaints.
A thorough investigation by the ED revealed that Fiewin was part of a much larger international crime network that orchestrated the movement of illicit funds through various methods. The international crime syndicate uses bank accounts and crypto wallets to move money which accumulates in a complex web of difficult-to-trace transactions.
What to Know
- Binance Ltd and Indian authorities were involved in a Spat earlier this year which led to Binance being ordered to pay a fine. The renewed collaboration between both parties spells an amended relationship between Binance and Indian Authorities.
- In May 2024, The ED and Binance’s FIU also managed to uncover the E-Nugget scam, a digital investment fraud that used a gaming platform to lure in victims.
