Binance said the ED was able to uncover the scam network thanks to critical intelligence from its financial investigative unit.
In one of the latest collaborations between public and private entities, the world’s largest cryptocurrency exchange, Binance, announced that it helped Indian authorities bust a purported legitimate online gaming app that defrauded users of more than Rs 400 crore ($47.6 million).
According to a blog post, the Binance Financial Intelligence Unit (FIU) provided critical aid that enabled India’s Enforcement Directorate (ED) to trace the funds siphoned by the operators of the gaming app Fiewin and uncover the network.
Binance Helps ED in Fraud Case
Fiewin operators marketed the app as a project that allows users to earn money by playing mini-games. Participants could create accounts and engage in the app’s activities by topping up their balances through various payment methods. However, the app stopped allowing users to withdraw their funds once their accounts accumulated substantial amounts, and the money would eventually be siphoned through a back door to multiple crypto wallets.
The ED commenced an investigation into the Fiewin app after local police nationwide began receiving multiple reports from victims who had lost their money to the project. During the investigation, the Directorate found that Fiewin was linked to a cross-border criminal network that used several methods to obscure the movement of illicit funds, including bank accounts of money mules and multiple crypto wallets.
The Indian agency also discovered that the project had stolen millions of Indian rupees from users and created a complex web of transactions to prevent the detection and tracing of funds. With the help of Binance, the ED was able to trace the flow of the laundered money across multiple crypto wallets and uncover the scam’s extensive network.
“Public-private collaborations are crucial in tackling complex financial crimes. Binance’s specialized investigation team is a great example of how private-sector firms can work closely with law enforcement. In this case, they provided us with analytical support that contributed to the investigation,” said a representative from the ED.
Four Individuals Arrested
In addition to uncovering the scam network, the ED’s investigation also led to the arrest of four individuals who played major roles in facilitating the scam and worked together with the operators of the Fiewin app. It was discovered that the perpetrators of the fraud used privacy-focused messaging applications to communicate while working from diverse locations.
Binance said the case is still ongoing, and the ED looks forward to uncovering the criminal network behind the fraud scheme and exposing the full extent of Fiewin’s activities.
