India’s financial watchdog, the Enforcement Directorate (ED), recently cracked down on the Fiewin gaming scam that had drained $47.6 million (roughly Rs. 400 crore) from its users. In a recent update on the case, Binance has announced that its internal intelligence unit played a key role in assisting the Enforcement Directorate (ED) in uncovering 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 enhance its contributions to India’s evolving crypto landscape.
The Fiewin Case Details
The Enforcement Directorate (ED) flagged the Fiewin gaming platform as a potential fraud after detecting suspicious transactions associated with it. During their investigation, the ED gathered evidence suggesting that Fiewin masqueraded as a legitimate app offering online betting and gaming, while allegedly defrauding its users.
Fiewin attracted users by promising quick returns through mini-games and encouraged them to top up their in-app balances through various methods. However, once users accumulated significant balances, the platform denied them the ability to withdraw their funds.
In August, the ED arrested four individuals connected to Fiewin for allegedly stealing over $47.6 million (approximately ₹400 crore) from its users. The stolen money was laundered through cryptocurrency assets and digital wallets.
In its statement on Wednesday, Binance noted, “This money was transferred to various cryptocurrency addresses, which were ultimately traced back to the operation. Throughout the ED’s investigation, Binance’s Financial Intelligence Unit (FIU) provided crucial intelligence that was key in tracing the funds and exposing the fraud network.”
Binance’s Involvement with ED
Binance claims that it has provided technical insights and analysis to the ED to assist the authorities launch a comprehensive investigation into Fiewin’s operations. As per its statement, the exchange also helped the ED trace the flow of laundered money across various cryptocurrency wallets.
Ferdinando D., Binance Investigation Specialist, worked alongside the ED on this case.
“Through its investigation, the ED discovered that the app had been part of a cross-border criminal network it used various methods to obfuscate the origin and movement of illicit funds by utilising bank accounts of ‘mules’ and cryptocurrency wallets, creating a complex web of transactions to hinder detection and tracing,” Binance said.
Binance, which recently obtained its Financial Intelligence Unit (FIU) registration in India, has committed to collaborating with local law enforcement authorities to investigate instances where the crypto sector is exploited by wrongdoers to defraud innocent individuals.
“Public-private collaborations are crucial in tackling complex financial crimes. Binance’s specialised investigation team is as example of how private-sector firms can work closely with law enforcement. In this case, they contributed to the investigation with analytical support,” Binance quoted an ED spokesperson as saying.
Crypto scams have been picking pace around the world. As per a recent report by the FBI, crypro-related frauds rose by 45 percent in 2023 leading to losses exceeding $5.6 billion (roughly Rs. 46,825 crore).
Back in August, Binance had claimed that it prevented losses worth $2.4 billion (roughly Rs. 20,068 crore) in the first half of 2024, out of which, 45 percent funds were linked to frauds and scams.
