October 01, 2024
By Our Correspondent
Binance reported that the Enforcement Directorate (ED) successfully identified the fraudulent network due to essential intelligence provided by its financial investigative unit. In a recent partnership between public and private sectors, Binance, the largest cryptocurrency exchange globally, revealed its assistance to Indian authorities in dismantling a seemingly legitimate online gaming application that deceived users out of over Rs 400 crore ($47.6 million).
As detailed in a blog post, the Binance Financial Intelligence Unit (FIU) played a pivotal role in enabling the ED to track the funds misappropriated by the operators of the gaming application Fiewin and to expose the underlying network.
The operators of Fiewin promoted the application as a platform where users could earn money by participating in mini-games. Users were able to create accounts and engage with the app by adding funds through various payment options. However, the application ceased to permit withdrawals once users accumulated significant balances, ultimately diverting the funds through a backdoor to numerous cryptocurrency wallets. The ED initiated an investigation into the Fiewin application following numerous reports from victims across the country who had lost money to the scheme.
During the inquiry, the Directorate uncovered that Fiewin was associated with a transnational criminal network that employed various tactics to conceal the movement of illicit funds, including the use of money mule bank accounts and multiple cryptocurrency wallets. Additionally, the Indian agency found that the project had defrauded users of millions of Indian rupees and had established a convoluted transaction network to evade detection and tracing of the funds. With Binance’s assistance, the ED successfully traced the flow of laundered money through various cryptocurrency wallets and revealed the extensive network behind the scam.
Public-private partnerships are essential in addressing intricate financial crimes. A representative from the ED stated, “Binance’s dedicated investigation team exemplifies how private-sector entities can collaborate effectively with law enforcement. Their analytical support significantly aided our investigation.”
The ED’s investigation not only revealed the scam network but also resulted in the apprehension of four individuals who were instrumental in facilitating the scam and collaborated with the operators of the Fiewin app.
It was found that the fraudsters utilized privacy-centric messaging applications for communication while operating from various locations. Binance has indicated that the investigation is ongoing, and the ED is eager to uncover the criminal network behind the fraudulent scheme and to reveal the full scope of Fiewin’s operations.
