On September 25, Binance announced its collaboration with Indian authorities to investigate an online scam allegedly linked to the Fiewin gaming app.
This joint effort resulted in the arrest of four individuals involved in the scam.
Fiewin initially positioned itself as a legitimate platform where users could easily earn money by playing mini-games. New users created accounts to engage in the app’s offerings, which included the option to “top-up” their in-app balances. However, many users soon discovered that once their funds reached a specific threshold, the app would freeze their accounts, preventing any recovery of their money.
The crypto exchange stated in its announcement that its in-house Financial Intelligence Unit (FIU) provided essential intelligence that was instrumental in tracing the flow of laundered funds and identifying the suspects involved in the operation.
The investigation revealed that the flow of funds was funnelled into multiple crypto wallets associated with an undisclosed crypto exchange. Though it remains unclear whether the estimated $47.6 million lost due to the scam has been recovered, Binance confirmed that the investigation is still active.
The exchange declared that it will continue to support the Indian Enforcement Directorate (ED) in pursuing the larger criminal network responsible for the fraudulent activities.
Ferdinando D., a member of Binance’s team on the case, stated,
“This case underscores the essential partnership between public institutions like the ED and private entities like Binance in tackling emerging digital threats.”
An unnamed representative from the Indian authority highlighted the importance of Binance’s collaboration, noting that the exchange’s involvement was vital in unravelling the intricate financial crimes associated with the Fiewin app case.
This is not the first instance of collaboration between ED and Binance. In May 2024, the ED, alongside Binance’s FIU, successfully uncovered the E-Nugget scam, a digital investment fraud that utilized a gaming platform to attract victims.
Interestingly, the development follows Binance’s recent resumption of operations in India after a seven-month suspension due to regulatory issues. The exchange confirmed its registration as a reporting entity with India’s Financial Intelligence Unit (FIU) in a post on X on August 15, 2024.
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