By Nermeen Nabil TLDR
Binance assisted India’s Enforcement Directorate in uncovering a $47.6M gaming scam
The scam involved luring victims into online betting with false promises
Binance’s Financial Intelligence Unit provided crucial information to trace funds
This collaboration highlights the importance of public-private partnerships in fighting digital crime
Binance has seen a 40% increase in institutional investors in 2024
The world’s largest cryptocurrency exchange, Binance, has played a key role in helping India’s Enforcement Directorate (ED) uncover a $47.6 million gaming scam linked to the Fiewin app.
The scam involved luring victims into online betting and gaming with promises of easy earnings before stealing their funds.
Binance’s Financial Intelligence Unit (FIU) provided critical information that helped trace the funds and expose the fraud network.
The ED, India’s primary financial crime investigation agency, stated that the collaboration with Binance was crucial in uncovering connections to digital wallets involved in the scam.
Ferdinando D., a Binance Investigation Specialist working on the case, emphasized the importance of collaboration between public institutions like the ED and private entities like Binance in addressing new types of digital threats.
The ED and Binance have not yet disclosed whether the $47.6 million has been recovered.
This cooperation comes after Binance became one of the few foreign exchanges registered with India’s Financial Intelligence Unit earlier this year.
This registration provides a form of soft recognition in a country where cryptocurrency remains largely unregulated.
Last year, Binance and the ED worked together to freeze millions linked to another gaming app scam, E-Nuggets, as part of a money laundering investigation.
These collaborative efforts highlight the growing need for public-private partnerships in combating digital financial crimes.
India’s stance on cryptocurrencies has been somewhat unclear. The country imposed strict crypto taxes in 2022, which, combined with the crypto market downturn, led Indian traders to switch to international exchanges.
This shift negatively impacted the local crypto industry. However, trading volumes shifted back to Indian exchanges after a ban on offshore entities was implemented.
As part of its G20 presidency in 2023, India has made it a priority to achieve global consensus on framing crypto policies. This move indicates the country’s recognition of the growing importance of digital assets in the global financial landscape.
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