Leading crypto exchange Binance and the Enforcement Directorate (ED) of India have jointly cracked down on a $47.6 Million Fiewin scam.
Indian ED identified and arrested four suspects in connection with an online game, Fiewin which was initially positioned as a legit platform to earn money via games, is now under investigation for scamming users of over $47.6M.
Suspects used digital wallets connected to a crypto exchange to launder money.
Announcing its role in the probe, Binance stated, “Throughout the ED’s investigation, Binance’s FIU provided critical intelligence that was instrumental in tracing the funds and uncovering the fraud network.”
Binance’s investigation team tracked the flow of laundered money across various crypto-wallets, and helped ED to expose the scam’s network.
The representative from ED commented on the joint effort, “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.”
As per Binance, Fiewin app promised users to earn easy money by playing mini-games. Users started to quickly create an account and participate in the app’s activities, with the option to “top up” their in-app balance using various payment methods. But after users’ accounts had substantial balance, the app reportedly ceased withdrawal of the funds.
The joint investigation led to the identification and arrest of individuals who played key roles in fraud, and were closely connected to handlers linked to Fiewin’s game using privacy-focused communication apps. Both parties are reportedly still working together to bring to fore the network of Fiewin app’s fraudulent activities and identify everyone involved.
Ferdinando D., Binance Investigation Specialist assisting ED in this matter, noted, “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.”
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