India’s financial watchdog, the Enforcement Directorate (ED), recently busted the Fiewin gaming scam that took $47.6 million (roughly Rs. 400 crore) from its users. In a recent update on the case, Binance announced that its internal intelligence unit played a key role in helping the Enforcement Directorate (ED) uncover the Fiewin gaming scam. In a statement released on Wednesday, September 25, Binance emphasized that public-private partnerships in the fight against financial crime can increase its contribution to India’s evolving crypto landscape.
Details of the Fiewin case
The Enforcement Directorate (ED) has flagged gaming platform Fiewin as a potential scam after discovering suspicious transactions linked to it. During its investigation, the ED gathered evidence to suggest that Fiewin masqueraded as a legitimate application offering online betting and gaming while allegedly cheating its users.
Fiewin attracted users by promising quick returns through mini-games and encouraged them to top up their in-app balance using various methods. However, once users accumulated significant balances, the platform denied them the ability to withdraw funds.
In August, the ED arrested four people associated with Fiewin for allegedly stealing over $47.6 million (roughly Rs. 400 crore) from its users. The stolen money was laundered through cryptocurrency and digital wallets.
In its statement on Wednesday, Binance noted: “This money was transferred to various cryptocurrency addresses, which ultimately led to the operation. During the ED’s investigation, Binance’s Financial Intelligence Unit (FIU) provided key intelligence that was crucial in tracking assets and exposing fraud networks.”
Binance’s involvement in ED
Binance claims it provided the ED with technical insights and analysis to help authorities launch a comprehensive investigation into Fiewin’s operations. According to her statement, the exchange also helped the ED trace the flow of laundered money through various cryptocurrency wallets.
Ferdinando D., Binance Investigation Specialist, worked alongside ED on this case.
“Through its investigation, the ED found that the app was part of a cross-border criminal network that used various methods to conceal the origin and movement of illicit funds using ‘mule’ bank accounts and cryptocurrency wallets, creating a complex web of transactions to prevent detection and tracking,” he said. is Binance.
Binance, which recently received the registration of its Financial Intelligence Unit (FIU) in India, has pledged to cooperate with local law enforcement authorities to investigate cases where criminals are exploiting the crypto sector to defraud innocent individuals.
“Public-private cooperation is crucial in the fight against complex financial crimes. Binance’s specialized investigative team is an example of how private sector companies can work closely with the police. In this case, they contributed to the investigation with analytical support,” Binance quoted an ED spokesperson as saying.
Crypto scams are accelerating worldwide. According to a recent FBI report, crypto-related fraud is set to grow by 45 percent in 2023 leading to losses exceeding $5.6 billion (roughly Rs. 46,825 crore).
Back in August, Binance claimed to have prevented losses worth $2.4 billion (roughly Rs. 20,068 crore) in the first half of 2024, of which 45 percent of funds were related to fraud.
