In a significant effort to combat financial fraud, the Enforcement Directorate (ED) of India has identified and arrested four individuals in connection with an online gaming app, Fiewin. The app, initially presented as a legitimate platform for users to earn money through games, is now under investigation for its role in defrauding users of over Rs 400 crore ($47.6M). The money was then laundered using digital wallets linked to a global crypto exchange. Throughout the ED’s investigation, Binance’s FIU provided critical intelligence that was instrumental in tracing the funds and uncovering the fraud network.

The Fiewin Scam: How It Worked

The Fiewin app gained traction by promising users the opportunity to earn money easily by playing 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 have surfaced suggesting that once users’ accounts accumulated substantial funds, the app stopped allowing them to withdraw the funds, leaving them unable to recover their money.

An investigation by the ED revealed that a staggering Rs 400 crore ($47.6M) was stolen through this scheme. This money was transferred into various cryptocurrency addresses, which were later traced back to the operation.

ED and Binance: A Strong Partnership in Action

Local police across India began receiving reports from victims who lost funds to the Fiewin app. Due to the growing number of victims reporting the scams, the case was escalated to the Enforcement Directorate (ED), a key law enforcement agency that specializes in combating financial crime. Established in 1956, the ED is tasked with enforcing economic laws in India and has a mandate to investigate and prevent money laundering and other forms of financial crime.

Through its investigation, the ED discovered that the app had been part of a cross-border criminal network it used various methods to obfuscate the origin and movement of illicit funds by utilizing bank accounts of “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 crucial 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.

The representative from 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 investigation has led to the arrest of several individuals who played key roles in facilitating the fraud, working in tandem with handlers linked to Fiewin’s gaming apps. The criminals communicated via privacy-focused messaging applications and operated from various locations.

With the case still ongoing, both the ED and Binance continue to work closely to further untangle the criminal network behind the fraud scheme. Their combined efforts aim to expose the full extent of the Fiewin app’s fraudulent activities and identify everyone involved. Both parties remain committed to ensuring that justice is served and to preventing similar scams in the future.

A Strengthened Collaboration for Future Investigations

Binance, which is entering the Indian market as a licensed entity, brings technological capabilities that are poised to enhance collaborative investigative efforts and better protect the public from financial fraud. Ferdinando D., Binance Investigation Specialist working on this 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 the new types of digital threats.”

The Fiewin app scam is a reminder of the growing threat posed by transnational financial crime networks. The ongoing investigation by the ED, supported by Binance’s analytical expertise, highlights the importance of public-private partnerships in dismantling fraud operations.

Previously, the ED and Binance’s FIU have also successfully partnered to dismantle the E-Nugget scam, a fraudulent digital investment scheme disguised as a gaming platform. This joint operation led to the identification and freezing of 42 digital-asset accounts and hundreds of bank accounts, totaling nearly $6M in ill-gotten gains, through blockchain analysis and ground operations. The E-Nugget case highlighted the critical role of collective vigilance and cooperation in combating financial crime and preserving the integrity of our digital financial environment.