Published on: September 26, 2024, 12:48h.
Last updated on: September 26, 2024, 12:57h.
Crypto exchange Binance has collaborated with authorities in India to recover US$47.6 million lost by victims of a scam gaming platform.
According to an announcement on its website, Binance’s Financial Intelligence Unit provided crucial intelligence to India’s Enforcement Directorate (ED) which helped trace the money laundered by operators of the Fiewin online gaming platform.
Marketted through YouTube, Facebook, and other digital channels, Fiewin was a platform where users could win money playing mini-games. However, it was also identified as a “pig-butchering” scam site by the ED.
Pig-butchering is a fraudulent scheme where victims are gradually lured into making increasing payments under the guise of earning money.
Extensive Criminal Network
Fiewin players were encouraged to bet small amounts on simple games of chance, initially being able to withdraw some winnings. But once deposits reached a certain level, accounts were frozen, and money disappeared. The system was designed to extract the maximum amount of money from victims.
Investigators from the ED found that Fiewin was part of a large international crime network engaged in significant money laundering through a complex series of transactions.
The operation was predominantly overseen by Chinese nationals, with support from Indian associates. Four Indian nationals connected to the case have been arrested, as per the agency.
Player funds were channeled into Indian bank accounts controlled by these individuals, converted to crypto, and sent to wallets owned by Chinese nationals on Binance. The main beneficiaries of these transactions were identified as Huang Liangliang, Zhang Longlong, and Zheng Wenjun.
Complex and Concealed
“The profits generated through the Fiewin online gaming app were subsequently layered and laundered through various accounts to obtain movable and immovable properties,” stated the ED.
Moreover, a significant portion of the ill-gotten gains in India was siphoned off by Chinese nationals using cryptocurrency,” the agency added. “The funds received by the Chinese nationals were layered through multiple private and exchange-based wallets.”
Binance noted that the investigation is ongoing, and they are committed to assisting the ED in uncovering the criminal network behind Fiewin.
“This case underscores the vital collaboration between public institutions like the ED and private entities like Binance in tackling new digital threats,” added the crypto exchange.