Binance Helps Indian Authorities Solve $4.76 Million Fiewin Scam
Date: 2024-09-25 Author: Henry Casey Categories: BUSINESS
The world’s largest cryptocurrency exchange Binance announced on September 25 that it has assisted India’s Economic Offences Directorate (ED) in investigating the Fiewin online gaming scam, leading to the arrest of four suspects.
According to a statement from Binance, its Financial Intelligence Unit provided key data that helped track the movement of the stolen funds and identify the individuals involved in the scam.
“The Fiewin app lured users with false promises of easy profits through gambling and mini-games,” Binance said. The exchange team also found that the money was transferred to various crypto wallets associated with the international cryptocurrency exchange.
While it is not yet known whether the stolen $4.76 million has been returned to the victims, Binance confirmed that the investigation is ongoing and they will continue to assist the ED in uncovering the wider network of scammers.
A spokesperson for the Indian ED stressed the importance of working with Binance, especially when investigating financial crimes related to cryptocurrency. “This case demonstrates the importance of government agencies like the ED working with private companies like Binance to combat emerging threats in the digital space,” the Binance spokesperson added.
The Fiewin app was promoted as a legitimate gaming platform that offered the opportunity to earn easy money through mini-games. Users created accounts and topped up their balances to participate in the games. However, they soon discovered that once a certain amount was reached, their accounts were frozen and they could no longer access their money. Soon, the police began receiving numerous complaints from victims who had lost their funds.
As the number of complaints increased, the case was transferred to the ED, India’s special unit for combating financial crimes. During the investigation, it was discovered that Fiewin was part of an international criminal network that used both bank accounts and cryptocurrency wallets to hide illegal financial transactions.
This is not the first time that ED has collaborated with Binance. In May 2024, ED and Binance Financial Intelligence helped uncover the E-Nugget scam, which also used gaming platforms to defraud users. Together, they were able to freeze 42 digital asset accounts and hundreds of bank accounts containing nearly $6 million in stolen funds.
On August 19, 2023, Binance officially registered as a member of the Indian Intelligence Service after a seven-month ban on the company's operations in the country.
