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Binance Helps Indian Authorities Crack $47M Crypto Gaming Scam

Binance Helps Indian Authorities Crack $47M Crypto Gaming Scam

Coinedition2024/09/24 16:00
By: Nynu V Jamal
BTC+0.10%FIU0.00%
  • India’s ED and Binance’s FIU probed into the Fiewin gaming app’s $47 million investor fund fraud.
  • The Enforcement Directorate arrested four individuals linked to Fiewin’s fraudulent activities.
  • The gaming app lured clients into online betting and gaming, promising high returns.

Binance exchange, shared details on its role in helping India’s Enforcement Directorate (ED) investigate and dismantle a fraudulent online gaming platform, Fiewin. The operation resulted in the arrest of four individuals allegedly involved in a ₹400 crore (approximately $47.6 million) scam.

In a blog post released today, Binance detailed how its Financial Intelligence Unit (FIU) provided critical assistance to the ED. Fiewin initially presented itself as a legitimate gaming platform but lured users into online betting and gaming with promises of exorbitant returns. Binance’s FIU furnished the ED with vital analytical support, helping investigators track the flow of illicit funds through the cryptocurrency ecosystem.

The development highlights the significance of collaborations between government agencies and private platforms to fight financial crimes. An ED representative pinpointed Binance’ s crucial role in preserving the integrity of India’s crypto space. They stated,

Read also: Binance CEO Backs BlackRock’s Bitcoin Hedge Against $35T US Debt

“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.”

Fiewin’s Deception Unravelled

The Fiewin app enticed users with the promise of significant returns by playing mini-games. The platform offered easy account creation and encouraged users to participate in various gaming activities. However, after accumulating substantial user funds, Fiewin blocked withdrawals.

The ED’s investigation revealed that the platform amassed around $47 million in customer funds through deceptive tactics. These funds ended up in numerous crypto wallets linked to the fraud.

Read also: Behind Bars in Nigeria: The Story of a Binance Executive’s Ordeal

As user complaints mounted, the ED, with Binance’s support, launched an investigation. Investigators discovered that the app operated as part of a larger global criminal network. The perpetrators utilized fake bank accounts and crypto wallets to hide the illegal funds, creating an intricate money trail designed to avoid detection.

However, Binance’s FIU helped investigators decipher the scam’s complex network and follow the laundered money across various crypto wallets.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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