Binance Helps Trace $47.6 Million in Funds and Arrest Four Suspects in Indian Gaming Scam

India's Enforcement Directorate (ED) has successfully dismantled a $47.6 million gaming scam.The scam, linked to the Fiewin app, lured victims with promises of easy money through online betting.

Binance, the world's largest cryptocurrency exchange, was vital in tracking the funds and arresting four individuals involved.

Binance's Crucial Role in Exposing the Fiewin Scam

Binance shared a blog post about the recent scamming associated with the Fiewin app.

The Fiewin app scam targeted users by promising earnings through gaming and betting. However, users' funds were later seized after completing tasks, leaving them with heavy losses.

In addition, the ED revealed that Binance's Financial Intelligence Unit (FIU) was instrumental in uncovering the fraud. Binance's information helped authorities trace the money flow across various digital wallets.

This case shows the importance of collaboration between public institutions like the ED and private entities like Binance," said Ferdinando D., a Binance Investigation Specialist.

Though Binance and the ED worked closely together to trace the funds, whether the $47.6 million (Rs 400 crore) has been recovered remains unconfirmed.

It's worth noting that the perpetrators moved the funds into different unknown cryptocurrency wallets.

Binance's support comes after it became one of the few foreign exchanges registered with India's Financial Intelligence Unit. This registration has boosted their cooperation with Indian authorities in combating digital crime.

In a previous case, Binance and India's Enforcement Directorate (ED) worked together to freeze millions of dollars linked to the E-Nuggets scam. The joint effort helped track down and freeze 42 digital-assets accounts, holding almost $6 million.

Also, they froze hundreds of bank accounts through detailed blockchain investigation.

We are honored to partner with the ED, and together, we have derailed a major financial scam, safeguarding countless potential victims," commented Jarek Jakubcek, Binance's Head of Law Enforcement.

However, India's stance on cryptocurrency regulation has remained unclear. Its strict tax policies on crypto transactions led many traders to international exchanges. As a result, when the government began cracking down on offshore platforms, Indian exchange volume surged.

Meanwhile, Indiaprioritizesdeveloping global crypto policies during its G20 presidency.

Binance Growth Amid Regulatory Challenges

Despite its legal battles, Binance experienced a 40% rise in institutional investors this year. CEO Richard Teng shared this during the Token2049 conference in Singapore.

Allocation into crypto by institutions is just at the tip of the iceberg," Teng said, referring to the growing interest from big investors. He added that many institutionsconductdue diligence before committing fully to crypto.

Binance, though popular among investors, faces significant regulatory scrutiny worldwide. In 2023, the U.S. Commodity Futures Trading Commission (CFTC) charged Binance with operating an illegal digital asset derivatives exchange.

The US SEC also accused Binance and its former CEO, Changpeng Zhao, of operating unregistered exchanges and securities. Despite these challenges, Binance continues expanding its reach and fostering cooperation with authorities.

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