Binance Collaborates with India Authority, Brings Down Massive Scam

The largest cryptocurrency exchange, Binance, recently helped law enforcement in India to bring down a large-scale scam valued at nearly $50 million.

Pig-Butchering Scheme Dismantled
The fraudulent action involved an app called Fiewin that lured users into an infamous “pig butchering” scheme by offering easy earnings and low risk. The scammers used a range of methods to hook up new customers, from promises about investments to different games that even paid out small winnings.

To lure new victims into the scheme, Fiewin promoted its platform via advertisements that appeared on Facebook, YouTube and other social media platforms. However, the scheme culminated with the “pig-butchering” part of the plan, when the funds of the so-called investors disappeared.

The scheme captured the attention of India’s Enforcement Directorate (ED). The body focused on bringing down the fraudulent scheme and tracking the stolen money. In this process, Binance played a key role, the famous crypto exchange announced earlier this week.

According to Binance, its Financial Intelligence Unit (FIU), provided vital data to the ED that ultimately helped bring down the massive gaming scam. The actions of the fraudulent app resulted in $47.5 million in losses. However, through data provided by Binance, ED tracked the money and brought down the massive fraud network. The swift actions resulted in the arrest of four people suspected of being involved in the scam.

“Binance, the world’s largest cryptocurrency exchange by trading volumes, has assisted India’s Enforcement Directorate (ED) in taking down a massive gaming scam worth $47.6 million,“

reads a statement released by Binance
The Cryptocurrency Exchange Will Help Combat More Financial Crimes in India
According to the ED, Binance’s involvement, especially the FIU data, played a key role for the downfall of the fraudulent scheme.

The collaboration between Binance and ED marked a milestone achievement for the cryptocurrency exchange. This is because the platform’s technological capabilities, and its entry into the market in India as a licensed entity, will help combat future fraudulent attempts, money laundering and financial crimes.

Binance investigation specialist Ferdinando D., who played a key role in the case and collaboration with ED, explained: “This case showcases the critical importance of collaboration between public institutions like the ED and private entities like Binance in addressing the new types of digital threats.”

What’s known about the culprits is that after withdrawing the victims’ funds, they converted them into crypto assets. Then they used Binance to send those assets to Chinese nationals. Besides residents of China, who were recipients of the stolen funds, the investigation uncovered that Indian nationals also engaged in the unlawful activity.