Indian authorities have dismantled a $48 million crypto scam involving the Fiewin gaming app. This operation was made possible with the cooperation of Binance.
The Fiewin gaming app is at the center of a massive fraud, where users were promised high returns on investments. Furthermore, India’s Enforcement Directorate (ED) linked the online gaming app to Chinese nationals.
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The Fiewin Gaming App: A typical Ponzi Scheme
According to a recent Hindustan Times report, “the Fiewin app drew users with promises of easy earnings via mini-games, while ED’s investigation revealed around ₹400 crore ($48 million) was misappropriated.”
While early investors were paid returns using the capital of newer investors, the Fiewin gaming app created an illusion of a profitable investment opportunity. As is typical with such schemes, the system eventually collapsed when it could no longer sustain payouts due to insufficient new investments.
Moreover, the victims of the scam were primarily those who fell for the app’s aggressive marketing strategies and the promise of quick profits.
The fraudulent activities were not limited to India. They extended to other countries, making it a transnational crime that required international cooperation for effective resolution.
Binance Aids Indian Authorities in Uncovering $47.6 Million Fiewin Gaming App Scam#Binance has played a crucial role in assisting India’s Enforcement Directorate (ED) in tracking and freezing assets tied to a $47.6 million scam connected to the Fiewin gaming app.
The… pic.twitter.com/At6cBO8XaD
— CryptoTvplus (@Cryptotvplus) September 25, 2024
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Role Of Binance In The Investigation
India has been grappling with regulatory challenges concerning cryptocurrencies. Binance played a crucial role in assisting Indian authorities. The exchanges helped trace and freeze the illicit funds associated with the Fiewin app.
Binance’s advanced blockchain analytics tools and compliance protocols were instrumental in identifying suspicious transactions, linking it to fraudulent activities.
“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,” a Binance statement said. However, reports suggested that once users’ accounts accumulated substantial funds, the app stopped allowing them to withdraw the funds, leaving them unable to recover their money.”
This crackdown highlights the increasing collaboration between global crypto platforms and law enforcement agencies.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
