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This Week In Crypto Asia: What Is Fiewin App Scam? How India Busted $48 Million Crypto Fraud With Binance’s Assistance

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India's ED cracks down on the Fiewin gaming app

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.

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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. 

Related: Binance Expands To Argentina, Locks Down 20th VASP Registration

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.

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. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Akriti Seth is a Zurich-based Business Journalist and Crypto Editor. Her passion for journalism has taken her across the globe – from thriving as an on-television correspondent to writing engaging articles, she has worked for companies like Informa UK, Bloomberg TV India, CNA Singapore. Akriti’s interest in the cryptocurrency space stems from her writing for Crypto Council for Innovation and Daily Coin. She believes that decentralisation technology has the potential to empower marginalised communities across the world. Entrepreneur Magazine, Hindustan Times, Tech Panda, Hackernoon and other publications have featured Akriti’s writings.

View all Posts by Akriti Seth

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