Last month, the Enforcement Directorate (ED) arrested four individuals linked to the online gaming app Fiewin, which allegedly defrauded users of more than Rs 400 crore (approximately $47.6 million).
The "Fiewin" software is accused of tricking unsuspecting people into playing games and placing bets online by seeming to be a reliable source and offering quick money. The app was originally marketed as a legitimate platform for users to earn money through gaming; however, investigations revealed it to be a scam.
This development highlights ongoing concerns about fraudulent activities in the online gaming sector, prompting regulatory scrutiny and enforcement actions. The illicit funds were exchanged for cryptocurrencies and subsequently transferred to Chinese nationals' wallets on the international cryptocurrency market Binance.
The Enforcement Directorate (ED) revealed that its investigation into the Fiewin app indicated that Chinese nationals were running the platform with assistance from Indian nationals. According to the ED, funds collected from unsuspecting online gamers through the Fiewin app were deposited into bank accounts belonging to individuals known as "recharge persons."
These individuals permitted the app owners to use their accounts in exchange for certain commissions. The agency estimates that around Rs 400 crore (approximately $47.6 million) was raised through this fraudulent scheme, emphasizing the cross-border nature of the operation and the involvement of multiple parties.
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