Chinese gaming app Fiewin duped Indians of ₹400 crore

The Enforcement Directorate (ED) has unearthed a ₹400 crore fraud involving Chinese nationals using the online gaming app, Fiewin. This investigation led to the arrest of four Indian nationals and the freezing of ₹25 crore linked to the scam. The app, marketed as a way to earn easy money through mini-games, duped users by blocking withdrawals once significant amounts were accumulated in their accounts.

The ED's investigation, supported by Binance, the world's largest cryptocurrency exchange, revealed that Fiewin funneled user funds into the accounts of Indian "recharge persons." These individuals, such as Arun Sahu and Alok Sahu, converted the funds into cryptocurrency before transferring them to wallets owned by Chinese nationals. Arrested accomplices, including engineer Chetan Prakash and software expert Joseph Stalin, played pivotal roles in laundering the money and integrating Chinese nationals into local operations.

Binance's statement highlighted that its Financial Intelligence Unit (FIU) assisted the ED in tracing the laundered funds, which were moved through multiple crypto exchanges and eventually deposited into seven Binance wallets operated from China. The investigation identified Chinese nationals Huang Liangliang, Zhang Longlong, and Zheng Wenjun as key beneficiaries of the scam, with assets worth ₹25.78 crores provisionally attached by the ED.

This operation resembled "pig butchering" scams, where victims are initially allowed to withdraw small winnings to build trust before being defrauded when larger sums are involved. Despite government bans, Fiewin continued to operate through loopholes, directing players to Telegram groups for updates and larger bets. The ED, with Binance's cooperation, continues to unravel this complex network of fraud.