Key Takeaways:
- Binance's Financial Intelligence Unit played a pivotal role by supplying essential data that enabled India's Enforcement Directorate to advance their investigation into the Fiewin scam.
- The Enforcement Directorate successfully traced the laundered money across international borders, uncovering a sophisticated scheme designed to obscure the illicit flow of funds.
- Arrests of four major participants in the Fiewin scam operation mark significant progress in the ongoing efforts to dismantle an extensive criminal network involved in online fraud.
YEREVAN (CoinChapter.com) — Binance, a major global cryptocurrency exchange, supported Indian authorities in dismantling a gaming application implicated in defrauding users of approximately Rs 400 crore ($47.6 million). Consequently, this action highlights the significant role played by Binance’s Financial Intelligence Unit (FIU). The Unit provided crucial data to India’s Enforcement Directorate (ED).
Rising Complaints Prompt Swift Action
The initiative began when local police across India received numerous complaints from individuals duped by the gaming app, Fiewin. As victim reports surged, the ED initiated an investigation to uncover the mechanics behind the scam. Investigators found that Fiewin enticed users with the potential to earn money by playing mini-games. After users deposited funds into their accounts, the app blocked them from withdrawing their money. It also secretly redirected the funds to multiple cryptocurrency wallets through a concealed pathway.
Detailed Trace Reveals Fiewin’s Extensive Network
The ED uncovered that Fiewin was part of a sophisticated cross-border criminal network. In addition, this network skillfully hid the illegal movement of funds using bank accounts of money mules and multiple cryptocurrency wallets. The ED tracked the flow of this laundered money. This revealed a complex scheme crafted to avoid detection.
Notably, the investigation resulted in the arrest of four individuals linked to the scam. These actions are part of the ED’s larger effort to fully dismantle the criminal network behind the Fiewin app’s operations.