India’s Enforcement Directorate (ED) has exposed a major $48 million cryptocurrency fraud involving the Fiewin gaming app. Tied to Chinese nationals, the scam lured users with promises of quick profits but blocked access to funds. India cracks down on $48M crypto fraud with Binance’s crucial role in the investigation, which uncovered complex crypto transfers linked to this fraud.
ED Uncovers ₹400 Crore Scam in Fiewin Gaming App
India’s Enforcement Directorate, part of the Ministry of Finance, has launched an investigation into a ₹400 crore ($48 million) fraud. This fraud, part of the larger initiative where India cracks down on $48M crypto fraud, is connected to the online gaming app Fiewin. The app, linked to Chinese nationals, deceived users by offering fast returns. However, it blocked their withdrawal attempts once substantial amounts were accumulated.
Following complaints, the ED froze ₹25 crore ($3 million) in accounts connected to the scam. Authorities arrested several individuals, including Indian nationals Arun Sahu and Alok Sahu, along with software engineers Chetan Prakash and Joseph Stalin, for their roles in facilitating the scam. This is an example of how India cracks down on $48M crypto fraud to safeguard its citizens.
Binance’s Support in Tracing Cryptocurrency Transfers
With Binance’s support, the ED uncovered a sophisticated web of cryptocurrency transfers involved in the scam. “Recharge agents” converted funds collected from Fiewin users into crypto and transferred them to wallets controlled by Chinese nationals. Binance traced nearly ₹400 crore that moved into eight crypto wallets as part of the scheme.
This case sheds light on the complexity of cross-border cryptocurrency scams, with Binance assisting in tracing these digital assets. India cracks down on $48M crypto fraud involving privacy-focused messaging apps to disguise their operations, but ongoing investigations are working to uncover the full scope of the scam.
A Step Toward Fighting Crypto Fraud
This investigation marks an important step in fighting large-scale cryptocurrency fraud in India. With the help of Binance, India’s crackdown on the Fiewin scam underscores the importance of international cooperation in addressing crypto-related crimes. As authorities continue tracking illicit crypto activity, they remind users to exercise caution when engaging with online platforms promising high returns.
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