In partnership with the world’s largest cryptocurrency exchange, Indian authorities have reportedly pulled apart a gaming app scam that defrauded users of over $47 million. The country’s Enforcement Directorate (ED) arrested four people. They allegedly assisted Chinese nationals in running Fiewin, a scam gaming app. Victims lost over Rs 400 core.
Users believe that the Fiewin app tempted them into online betting and gaming via mini-games. It promises easy profits before eventually trapping their funds. New users could create and account as well as start using the services of the app. This is with options to top up their in-app balance using different payment methods. Nevertheless, reports suggest that once the accounts of users grew to substantial amounts, the app blocked withdrawals and leaves them unable to recover their money.
According to Binance, criminals laundered the money using digital wallets linked to a global crypto exchange. The Financial Intelligence Unit of the crypto exchange reportedly provided intelligence to help trace funds and uncover the network.
Through its investigation, the ED discovered that the app was part of a cross-border criminal network that used various methods to obscure the origin and movement of illicit funds, including mule bank accounts and cryptocurrency wallets. This creates a web of transactions to contain detection and tracing.
An Indian Enforcement Directorate spokesperson stated that 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 them with analytical support that contributed to the investigation.
Ferdinando D. is a Binance investigation specialist. He has been working on this case with the ED. The investigation specialist added that 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.
