Leading cryptocurrency exchange Binance has played a vital role in assisting India’s Enforcement Directorate (ED) in recovering $47.6 million lost by victims of a gaming scam involving the online platform Fiewin.

Binance Assists in Gaming Scam Investigation

On September 25, Binance, the world’s largest cryptocurrency exchange by trading volume, announced its collaboration with Indian authorities to investigate the Fiewin gaming app. This effort led to the arrest of four individuals connected to the online gaming scam.

According to Binance, their Financial Intelligence Unit (FIU) provided essential intelligence that was instrumental in tracking the flow of laundered money and identifying the suspects behind the operation.

“The Fiewin app lured users into online gambling and gaming with false promises of easy profits,”

Binance reported. The FIU tracked the funds and uncovered the fraudulent network behind the scam.

Tracking the Funds

Binance’s investigation revealed that the funds were distributed to various crypto-wallets linked to a global crypto exchange. While it remains unclear whether the $47.6 million has been fully recovered, Binance confirmed that the case is ongoing and pledged continued support to the Indian ED in dismantling the broader criminal network.

Importance of Collaboration

An unnamed ED representative highlighted the significance of Binance’s role in the investigation, emphasizing the complexity of financial crimes involving cryptocurrency.

“This case showcases the critical importance of collaboration between public institutions like the ED and private entities like Binance in addressing new types of digital threats,”

a Binance spokesperson added.

The Fiewin Scam Unveiled

Fiewin initially marketed itself as a legitimate platform where users could earn money by playing mini-games. However, users soon discovered that the app would freeze their accounts once their funds reached a certain amount, preventing them from recovering their money. As reports from victims accumulated, the case was escalated to the Enforcement Directorate, India’s special unit for combating financial crime.

International Crime Network

The ED’s investigation revealed that Fiewin was part of an extensive international crime network that moved illicit funds through various methods, including bank accounts and crypto wallets, creating a complex web of transactions that were challenging to trace.

Previous Collaborations

This is not the first instance of collaboration between the Indian ED and Binance. In May 2024, they jointly uncovered the E-Nugget scam, a digital investment fraud that used a gaming platform to defraud users. Through blockchain analysis and field investigations, the team identified and froze 42 digital asset accounts and hundreds of bank accounts, recovering nearly $6 million.

Binance’s Official Registration

On August 19, 2023, Binance was officially registered as an Indian Intelligence reporting entity. This registration followed a seven-month ban imposed by Indian authorities due to Binance operating without proper registration.

#CryptoBulls #Blockchain #BlockchainCommunity

Post Views: 2