ED Arrests Four In Fiewin App Scam; Binance Aids In Dissecting ₹400 Cr Fraud
The Fiewin app presented itself as a legitimate online platform where users could participate in mini-games and earn money
In a crackdown on financial crime, India's Enforcement Directorate (ED) has arrested four individuals linked to the Fiewin app scam, an alleged fraud that cost victims over Rs 400 crore (USD 47.6 million). The app, which initially enticed users with promises of easy earnings through online gaming, ultimately trapped their funds, preventing withdrawals and leading to substantial financial losses. Binance’s Financial Intelligence Unit (FIU) played a pivotal role in assisting the ED by tracing the laundered money through cryptocurrency wallets.
The Fiewin Scam
The Fiewin app presented itself as a legitimate online platform where users could participate in mini-games and earn money. It gained popularity quickly, offering users easy account setup and the ability to top up their in-app balances using various payment methods. However, after accumulating significant funds, users discovered they were unable to withdraw their money, leading to widespread financial losses. The ED’s investigation revealed that Rs 400 crore (USD 47.6 million) had been siphoned off through this fraudulent scheme, with the stolen money laundered via cryptocurrency addresses.
The app's operators used sophisticated techniques to obscure the origin and movement of the funds, including the use of bank accounts belonging to ‘mules’ and cryptocurrency wallets. This created a complex network of transactions that hindered detection and tracing efforts. The victims, many of whom were spread across India, began reporting the fraud to local authorities, eventually leading to the ED taking over the case.
Collaboration Between ED And Binance
The ED partnered with Binance’s FIU to trace the flow of laundered money. Binance, which recently obtained a license to operate in India in August 2024, provided critical technical assistance in tracking the fraudulent transactions. Through blockchain analysis and other investigative techniques, Binance’s team helped the ED uncover the scam’s cross-border network and identify key figures involved in facilitating the fraud.
A representative from the ED spoke on the importance of such collaborations, stating, “Public-private partnerships are essential in tackling complex financial crimes. Binance’s investigation team played a crucial role in providing analytical support that helped expose the fraud network.”
Binance’s involvement helped the ED to arrest several individuals involved in the scam, who had been using privacy-focused messaging platforms to communicate and orchestrate their operations from different locations. The investigation is ongoing, with further efforts underway to identify additional parties connected to the fraud and recover more of the laundered money.
This isn't the first collaboration between the ED and Binance. In a previous case involving the E-Nugget scam—a fraudulent digital investment scheme disguised as a gaming platform—the two entities worked together to freeze 42 digital asset accounts and hundreds of bank accounts tied to the scam. Through meticulous blockchain analysis, they managed to recover nearly USD 6 million in ill-gotten gains.
Both the Fiewin and E-Nugget cases call for public awareness and vigilance in protecting against financial fraud in the digital age.
