ED Freezes ₹25 Crore Linked to FIEWIN Online Gaming App Amid Investigation into Fraud and Money Laundering

ED Freezes ₹25 Crore Linked to FIEWIN Online Gaming App Amid Investigation into Fraud and Money Laundering

The Enforcement Directorate (ED) has taken action against the FIEWIN online gaming app, freezing ₹25 crore and investigating its role in transferring ₹400 crore from India to China, leading to the arrest of four individuals involved in the scheme.

Durgesh Dubey
26 Sep, 2024

Money Laundering

The Enforcement Directorate (ED) has taken significant action against the online gaming app FIEWIN, freezing approximately ₹25 crore in funds. This move follows the identification of Chinese nationals allegedly using the app for anti-India activities.

The investigation revealed that FIEWIN facilitated the transfer of around ₹400 crore from India to China. The ED is currently tracing the money laundering trail linked to these transactions. A few days prior, the agency conducted multiple raids across the country related to FIEWIN, leading to the arrest of several Indian nationals. During questioning, it was revealed how this app was used to siphon off funds to China.

The app operated by allowing users to participate in online betting and gaming, and four individuals have been arrested in connection with fraudulent activities involving FIEWIN. Notably, a case was registered at Kolkata's Kosiapur police station on May 16, 2023, under various sections of the IPC for fraud and conspiracy involving the app.

The investigation uncovered that Chinese nationals were running the app with the assistance of Indian citizens. Funds collected from online gamers were transferred into the bank accounts of certain individuals, referred to as recharge persons, who received a commission for allowing their accounts to be used.

Key individuals, Arun Sahu and Alok Sahu from Rourkela, Odisha, acted as recharge facilitators. The money transferred into their accounts was converted into cryptocurrency, which was then laundered through foreign exchanges, specifically Binance, into wallets controlled by Chinese nationals.

Another individual, Chetan Prakash from Patna, played a significant role in the money laundering operation by facilitating the conversion of funds into cryptocurrency (USDT). Joseph Stalin, a Chennai-based software engineer, assisted in establishing connections with Chinese nationals for managing substantial payments linked to the app.

These payments were initially funneled through Studio 21 Private Limited, a company co-directed by a Chinese citizen, Pi Pengyun, who was instrumental in gaining the trust of gamers and encouraging them to place large bets. The proceeds were then transferred to wallets managed by the Chinese operators, who subsequently exchanged the cryptocurrency back into rupees using a peer-to-peer mode on Binance.

The ED's ongoing investigation has revealed that the fraudulent operations linked to FIEWIN resulted in a staggering ₹400 crore being funneled into eight Binance wallets attributed to Chinese nationals. Communication logs show that these suspects were in contact via Telegram, demonstrating their active involvement in the scam. All four accused individuals have been arrested, and the ED is committed to ensuring strict action against those involved in this elaborate scheme.