Binance aids ED in busting major online gaming scam in India

India's Enforcement Directorate (ED) has arrested four individuals linked to the Fiewin online gaming app, which defrauded users of over ₹400 crore (approximately $47.6 million). 

According to a blog post, marketed as a legitimate platform for earning money through games, the app is now under investigation for laundering funds through digital wallets associated with a global cryptocurrency exchange. Binance's Financial Intelligence Unit (FIU) provided crucial intelligence that helped trace the stolen funds.

The Fiewin app attracted users by promising easy earnings but blocked withdrawals once substantial funds were accumulated. The ED discovered it was part of a cross-border network that obscured the origins of the stolen money using "mule" bank accounts and cryptocurrency wallets. As complaints from victims increased, the case escalated to the ED, which specializes in financial crime investigations.

Binance, recently licensed to operate in India, assisted the ED with technical insights that were vital in tracking laundered money. The investigation has led to multiple arrests of individuals involved in facilitating the fraud. Both the ED and Binance are committed to uncovering the full extent of this criminal network and preventing future scams.