Binance helps Indian authorities in busting $47M Fiewin gaming app scam

India’s Enforcement Directorate (ED) has cracked down on a major scam with cryptocurrency exchange Binance helping trace over $47 million lost by victims.

According to a September 25 announcement from Binance, the world’s largest cryptocurrency exchange by volume, played a crucial role in investigating the Fiewin gaming app scam, which lured users with false promises of easy earnings via online gaming.

The ED, India’s special unit for combating financial crimes, worked alongside Binance to uncover the scam’s complex web of financial transactions, leading to the arrest of four individuals linked to the fraud.

Specifically, Binance’s Financial Intelligence Unit (FIU) helped track the flow of laundered funds across various crypto wallets connected to an unnamed global exchange.

Fiewin, the platform at the center of the scam, initially promoted itself as a legitimate online gaming app where users could earn money by playing mini-games. New users were required to top up their in-app balances to participate. 

However, after users accumulated a certain amount, the app froze their accounts, preventing them from recovering their funds. 

Following numerous complaints from victims, Indian authorities handed the case over to the ED, which discovered that Fiewin was part of a larger international crime ring.

Further investigations revealed that illicit funds were funneled through a mix of bank accounts and digital currency wallets, creating a complex network of hard-to-trace transactions.

Binance stated that the investigation was still ongoing and did not disclose whether the $47.6 stolen by the scammers had been recovered.

A representative from India’s ED acknowledged Binance’s assistance, describing the exchange’s role as critical in untangling the scam, adding:

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.

Binance’s presence in India

This isn’t Binance’s first collaboration with Indian authorities, but it marks the exchange’s first joint effort since becoming an officially registered reporting entity after paying a $2.25 million fine and facing a seven-month ban for operating without the necessary registration.

In May 2024, the two entities collaborated to uncover the E-Nugget scam, another fraudulent gaming platform that managed to loot over $10 million from its targets. Binance was instrumental in tracking the flow of funds in that case as well.

Binance is also embroiled in a dispute over its ownership of the Indian cryptocurrency exchange WazirX.

Earlier this month, the exchange clarified its position, stating it never completed the acquisition of WazirX, distancing itself from the company. 

Although a contract had been signed, Binance clarified that the acquisition was not finalized and that it only provided technical wallet services to WazirX.

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