Indian authorities and Binance crack down on $47M gaming app scam

Indian authorities, in collaboration with Binance, the world’s largest cryptocurrency exchange, have reportedly dismantled a gaming app scam that defrauded users of over $47 million. The country’s Enforcement Directorate (ED) arrested four people who allegedly assisted Chinese nationals in running a scam gaming app called Fiewin, in which victims lost over Rs 400 crore.

The Fiewin app is believed to have lured users into online betting and gaming through mini-games, promising easy profits before eventually trapping their funds. New users could create an account and start using the app’s services, with options to “top up” their in-app balance using various payment methods. However, reports suggest that once users’ accounts grew to substantial amounts, the app blocked withdrawals, leaving them unable to recover their money.

According to Binance, the money was then laundered using digital wallets linked to a global crypto exchange. The crypto exchange’s Financial Intelligence Unit reportedly provided intelligence to help trace funds and uncover the network.

Through its investigation, the ED discovered that the app had been part of a cross-border criminal network it used various methods to obfuscate the origin and movement of illicit funds by using bank accounts of “mules” and cryptocurrency wallets, creating a web of transactions to hamper detection and tracing.

An Indian Enforcement Directorate spokesperson said: “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.”

Binance investigation specialist Ferdinando D., who has been working on this case alongside the ED, added: “This case showcases the critical importance of collaboration between public institutions like the ED and private entities like Binance in addressing the new types of digital threats.”

Binance previously reported that the ED and its FIU also helped dismantle the E-Nugget scam, a digital investment scam disguised as a gaming platform. The joint operation led to the identification and freezing of 42 digital-asset accounts and hundreds of bank accounts, totaling nearly $6M in unlawful profits, through blockchain analysis and ground operations.

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