India Cracks Down on $48 Million Crypto Fraud in Gaming App Fiewin with Binance’s Help

India’s Enforcement Directorate has uncovered a massive $48 million scam involving online gaming app Fiewin involving Chinese nationals. After an in-depth investigation, funds equivalent to around $3 million were frozen in accounts linked to these individuals. The scam lured users with make-money-quick schemes but blocked withdrawals. The investigation also involved Binance’s support, revealing complex cryptocurrency transfers to China.

ED Exposes 400 Crore Scam Involving Online Gaming App Fiewin

India's Enforcement Directorate (ED), a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, has taken action against a massive fraud worth 400 crore rupees (about $48 million) involving online gaming app Fiewin involving Chinese nationals.

The probe, reported by NDTV, led to the freezing of ₹25 crore in accounts linked to these Chinese individuals. The ED, with support from cryptocurrency exchange Binance, investigated the app, which allegedly lured users with promises of quick earnings. However, the app allegedly stopped users from withdrawing money after accumulating a significant amount. As complaints mounted, the case was referred to the ED, which deals with economic crimes.

Several individuals have been arrested for their roles in facilitating the scam, including Indian citizens Arun Sahu, Alok Sahu and software engineers Chetan Prakash and Joseph Stalin.

According to the ED’s findings, the money collected from gamers was routed through “toppers” to convert the money into cryptocurrency, which was then transferred to the cryptocurrency wallets of Chinese citizens. Binance’s statement revealed that the fraud involved a sophisticated network that used privacy-focused messaging and masked financial transactions to avoid detection. The investigation has traced nearly ₹400 crore to eight Binance wallets, with authorities continuing their efforts to uncover the full extent of this cross-border fraud.

What do you think about this massive online gaming scam involving cryptocurrency and Chinese citizens? Let us know in the comments below.
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