Binance announced that India's Enforcement Directorate (ED) has arrested four individuals connected to the Fiewin gaming app scam. The investigation revealed links to digital wallets, with Binance's Financial Intelligence Unit (FIU) providing significant assistance.
The four individuals tied to the Fiewin gaming app allegedly defrauded users of over Rs 400 crore ($47.6 million) by promising easy earnings through online betting. Victims reported that once funds accumulated in their accounts, withdrawals were blocked, and the funds were laundered via digital wallets connected to a global crypto exchange, according to a press release by Binance.
According to a press release by Binance, the representative from ED said, "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."
ED and Binance's FIU previously collaborated to disrupt the E-Nugget scam, which falsely presented itself as a gaming platform for digital investments. Their joint efforts resulted in the identification and freezing of 42 digital asset accounts and numerous bank accounts, amounting to nearly $6 million in fraudulent gains, according to a press release by Binance.
"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," said Ferdinando D., Binance investigation specialist.
Binance operates as a major global blockchain platform, featuring the largest digital asset exchange by trading volume. The company offers a wide range of financial products and services and is known for its comprehensive ecosystem, which includes educational resources, research, charitable initiatives, and an NFT marketplace. According to Binance, it supports users around the clock in 40 languages and prioritizes security and regulatory compliance to protect its users and contribute to the growth of the blockchain industry.