The Enforcement Directorate (ED) has uncovered a massive Rs400 crore fraud linked to the Fiewin online gaming app, which attracted users with promises of easy earnings through mini-games. According to investigations, the scheme involved Chinese nationals collaborating with Indian associates to defraud participants.
In a recent operation, four Indians accused of aiding the Chinese nationals were arrested by ED officials in Kolkata. Binance, the world’s largest cryptocurrency exchange, played a key role in assisting the investigation, which has led to approximately Rs25 crore being frozen as part of the probe.
The Fiewin app initially enticed users by allowing quick registration and participation in mini-games with the potential to earn quick money. Users were encouraged to “top up” their in-app balances via multiple payment methods. However, it soon became clear that once users accumulated substantial funds, the app restricted them from withdrawing their money.
The ED’s investigation revealed that around Rs400 crore was misappropriated through this operation. The funds were laundered through cryptocurrency wallets and traced back to Chinese nationals.
As complaints about the app escalated, local authorities transferred the case to the ED. It was discovered that the funds collected from users were funneled into the accounts of individuals known as “recharge persons.” These individuals, such as Arun Sahu and Alok Sahu from Rourkela, Odisha, allowed their accounts to be used in exchange for a commission. The money was then converted to cryptocurrency and transferred to Chinese-controlled crypto wallets.
Chetan Prakash, an engineer from Patna, was arrested for his involvement in converting funds, while Joseph Stalin, a software engineer from Chennai, was implicated for helping Chinese national Pie Pengyun, who used Stalin’s company, Studio 21, for bulk payouts related to the Fiewin app.
The scam involved sophisticated methods to obscure the origins and movement of illicit funds through the use of bank accounts of “mules” and cryptocurrency wallets. The ED has so far traced around Rs400 crore laundered via eight Binance wallets owned by Chinese nationals.
The operation remains ongoing, and further arrests are expected.
