India Cracks Down on China’s ₹400 Crore Gaming Fraud

The Enforcement Directorate (ED) has uncovered a massive ₹400 crore fraud linked to the online gaming app Fiewin, which allegedly involved Chinese nationals. The app attracted users by promising easy earnings through mini-games, but once users accumulated substantial funds, the app stopped allowing them to withdraw their money.

The ED’s investigation revealed that the funds collected from unsuspecting online gamers were deposited into the bank accounts of various individuals referred to as “recharge persons” who allowed the app owners to use their accounts in exchange for commissions. The money was then converted to cryptocurrency and transferred to crypto accounts of Chinese nationals.

Four Indians accused of aiding the Chinese nationals in this scheme were arrested by ED officials in Kolkata. The ED’s inquiry, aided by Binance, the world’s largest cryptocurrency exchange, traced the laundered funds through multiple cryptocurrency wallets.

Key Findings:

The Fiewin app promised easy earnings through mini-games to attract users

Once users accumulated funds, the app blocked withdrawals, trapping their money

₹400 crore was stolen through this scheme and laundered using cryptocurrency

Four Indians were arrested for facilitating the fraud by allowing their bank accounts to be used

The ED collaborated with Binance to track the laundered funds through crypto wallets

The ED’s investigation uncovered that the app was part of a cross-border criminal network that employed various tactics to conceal the origin and movement of illicit funds. The case highlights the growing threat of online gaming scams and the importance of collaboration between law enforcement and private entities like Binance in tackling such complex financial crimes.cryptocurrency, money laundering, online gaming scams