 "crypto, crypto currency, bitcoin")
Binance, which is entering the Indian market as a licensed entity, brings technological capabilities aimed at enhancing collaborative investigative efforts and better protecting the public from financial fraud Photo: Pexels
Global cryptocurrency exchange platform Binance announced that it had collaborated with India’s Enforcement Directorate (ED) in investigating financial frauds, leading to the arrest of four individuals connected to an online gaming app.
The gaming app, Fiewn, which allows users to earn money through games, is now under investigation for defrauding users of over Rs 400 crore ($47.6 million).
The money was laundered using digital wallets linked to a global cryptocurrency exchange. Throughout the ED’s investigation, Binance’s financial intelligence unit (FIU) provided crucial intelligence, which was instrumental in tracing the funds and uncovering the fraud network, the company said in a statement.
Binance, which is entering the Indian market as a licensed entity, brings technological capabilities aimed at enhancing collaborative investigative efforts and better protecting the public from financial fraud. Ferdinando D., Binance’s investigation specialist, who worked on the case alongside the ED, noted, “This case showcases the critical importance of collaboration between public institutions like the ED and private entities like Binance in addressing new types of digital threats.”
What is Fiewn?
Local police across India began receiving complaints from victims who lost funds to the Fiewn app. Due to the increasing number of reports, the case was escalated to the Enforcement Directorate (ED).
Through its investigation, the ED discovered that the app was part of a cross-border criminal network that used various methods to obfuscate the origin and movement of illicit funds, including the use of bank accounts belonging to “mules” and cryptocurrency wallets, creating a complex web of transactions to hinder detection and tracing.
In partnership with Binance, the ED launched a comprehensive investigation. Binance, which obtained its license to operate in India in August 2024, has played a critical role in assisting the ED with technical insights and analysis. The platform’s dedicated investigation team helped trace the flow of laundered money across various cryptocurrency wallets, enabling law enforcement to uncover the scam’s extensive network.
A representative from the ED remarked, “Public-private collaborations are crucial in tackling complex financial crimes. Binance’s specialized investigation team is a great example of how private-sector firms can work closely with law enforcement. In this case, they provided us with analytical support that contributed to the investigation.”
The Fiewn app gained traction by promising users the opportunity to earn money easily through mini-games. New users could quickly create an account and begin participating in the app’s activities, with the option to “top up” their in-app balance via various payment methods. However, reports surfaced that once users’ accounts accumulated substantial funds, the app prevented them from withdrawing the money, leaving them unable to recover their funds.
The investigation has led to the arrest of several individuals who played key roles in facilitating the fraud, working in tandem with handlers linked to Fiewn’s gaming apps. The criminals communicated via privacy-focused messaging applications and operated from various locations.
First Published: Sep 25 2024 | 3:00 PM IST
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