this law enforcement bureau (ED) Four persons related to the online gaming application have been identified and arrested. Fewen. The app, which was initially positioned as a legitimate platform for users to earn money through games, is currently under investigation for defrauding users of over Rs 400 crore. The money was then laundered using digital wallets linked to global cryptocurrency exchanges.
The world’s largest cryptocurrency platform Binance It claimed that its Financial Intelligence Unit (FIU) provided critical intelligence that helped ED track funds and expose fraud networks. According to the Economic Times, the ED investigation also found that Chinese nationals on the platform were allegedly running illegal betting/gaming apps with the help of Indian associates.
Fiewin Gaming App Scam: What It Is and How It Works
Binance explained in a report that the Fiewin app gained attention by promising users the chance to make money easily by playing mini-games. The app allows new users to quickly create an account and start participating in the app’s activities, with the option to “top up” their in-app balance through a variety of payment methods.
However, there are reports that once a user’s account accumulates a large amount of money, the app stops allowing them to withdraw funds, leaving them unable to recover their funds.
An investigation by the education ministry revealed that Rs 400 crore was stolen through this scheme. The money was transferred to various cryptocurrency addresses and subsequently traced back to the operation.
Local police across the country began receiving reports from victims who had lost money to the Fiewin app. The case has been escalated to the emergency room due to an increasing number of victims reporting the scam.
ED’s investigation found that the app was part of a cross-border criminal network that used bank accounts and cryptocurrency wallets of “money mules” to create a complex transaction network using various methods to obfuscate the source and flow of illegal funds. Impeding detection and tracing.
The investigation led to the arrest of several individuals who played key roles in facilitating the fraud by cooperating with handlers associated with the Fiewin gaming application. ED added that criminals communicate through privacy-focused messaging apps and operate from different locations.
What ED says about scams
“Public-private collaboration is critical to tackling complex financial crimes. Binance’s professional investigative team is a great example of how private companies can work closely with law enforcement. In this case, they provided us with tools that helped with the investigation analytical support,” an ED representative said.
What does Binance have to say about this scam?
“This case demonstrates the critical importance of collaboration between public agencies such as ED and private entities such as Binance in combating new digital threats.” Binance investigation expert Ferdinando D. added.
