₹400 crore fraud uncovered in online gaming app Fiewin

The Enforcement Directorate (ED) has exposed a massive ₹400 crore fraud linked to the online gaming app Fiewin, allegedly operated by Chinese nationals.

This app lured users with promises of easy earnings through mini-games but left them unable to withdraw their funds once significant amounts were accumulated.

The scheme came under scrutiny after numerous complaints were filed with local authorities, leading to an ED investigation.

The Fiewin app allowed users to quickly set up accounts and top up their balances through various payment methods.

However, once users amassed substantial sums, the app blocked withdrawals, trapping their money.

The investigation, supported by Binance, the world’s largest cryptocurrency exchange, uncovered that about ₹400 crores had been funnelled into multiple cryptocurrency addresses.

These addresses were traced back to a group of Chinese nationals running the operation in collaboration with Indian associates.

A crucial element of the fraud involved individuals known as recharge persons, who allowed their bank accounts to be used to collect funds from the gaming app in exchange for a commission.

These funds were later converted into cryptocurrency and transferred to Chinese nationals.

The ED found that this network utilized a complex web of bank accounts, mule accounts, and cryptocurrency wallets to obscure the source and flow of illicit money.

Key Arrests in the Investigation

• Arun and Alok Sahu, both from Odisha, played significant roles as recharge persons, depositing funds from Fiewin users into their accounts, which were converted into cryptocurrency.
• Chetan Prakash from Patna was arrested for converting the funds into crypto.
• Joseph Stalin, a software engineer from Chennai, was apprehended for assisting Pie Pengyun, a Chinese national, in facilitating bulk payouts related to the gaming app through his company.

This investigation highlights how these individuals used sophisticated methods, including privacy-focused messaging apps, to communicate and carry out transactions across borders.

The probe has resulted in the freezing of ₹25 crore in assets, with further arrests likely as the investigation continues.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 15, 2017

Image Reference: https://pxhere.com/en/photo/723651