Crypto Exchange Binance Claims It Helped ED Crack Rs 400 Crore Fiewin Gaming Scam

Recently, the Enforcement Directorate (ED) had caught the Fiewin gaming scam of $ 4.75 crore (about Rs 400 crore). American crypto exchange Binance has claimed that its intelligence division had helped a lot in exposing this gaming scam. ED had declared it a fraud after detecting suspicious transactions related to the Fiewin gaming platform.

Binance has a statement pointed out that public-private partnership in the fight against financial crimes can increase its contribution to the country’s rapidly growing crypto segment. ED had said in its investigation that Fiewin was offering online gaming and betting under the guise of a legitimate app and was allegedly cheating the users. Fiewin is promising users quick returns under the guise of mini games and encouraging them to top up their in-app balance in various ways. It does not allow users to withdraw funds if their balance is high.

In August, the ED had arrested four executives linked to Fiewin in an alleged scam of $4.75 crore (about Rs 400 crore) from users. This amount was laundered through cryptocurrency assets and digital wallets. Binance claims that its intelligence unit had provided important information which made it easier to expose this fraud network and trace the funds.

Recently Binance received a notice to pay GST of Rs 772 crore in the country. After this Binance has reiterated its commitment to comply with the laws of the country. A notice was issued to this American exchange by the Directorate General of GST Intelligence (DGGI). Earlier this year, Binance’s business was temporarily banned in the country. The reason for this was that this exchange was not registered with the Financial Intelligence Unit (FIU). The reason for this notice is a fee collected from traders in the country. The amount of this fee is approximately Rs 4,000 crore and it was transferred to the company abroad. DGGI’s Ahmedabad zonal unit had detected a glitch in the functioning of Binance. Last month, Binance had registered with the Financial Intelligence Unit (FIU) in the country.