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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Binance, the world’s largest cryptocurrency exchange by trading volume, has played a pivotal role in assisting India’s Enforcement Directorate (ED) in dismantling a $47.6 million gaming scam linked to the Fiewin app.
The scam involved luring victims into online betting and gaming, promising easy earnings before seizing their funds.
According to a press release shared with Cryptonews.com, Binance’s Financial Intelligence Unit (FIU) provided crucial information that helped trace the funds and expose the fraud network.
Binance Plays Key Role in Uncovering Scam
The ED, India’s primary financial crime investigation agency, revealed that the collaboration with Binance was key in uncovering connections to digital wallets involved in the scam.
“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,” Ferdinando D., Binance Investigation Specialist working on this case alongside the ED, said.
The ED and Binance have not yet disclosed whether the $47.6 million has been recovered.
The cooperation comes after Binance became one of the few foreign exchanges registered with India’s Financial Intelligence Unit earlier this year, providing a form of soft recognition in a country where cryptocurrency remains largely unregulated.
In a similar effort last year, Binance and the ED collaborated to freeze millions linked to another gaming app scam, E-Nuggets, as part of a money laundering investigation.
India’s stance on cryptocurrencies has been somewhat ambiguous.
The imposition of strict crypto taxes in 2022 and the crypto market downturn led Indian traders to switch to international exchanges, negatively impacting the local crypto industry.
Trading volumes shifted back to Indian exchanges after the ban on offshore entities, however.
India has made it a priority to achieve global consensus on framing crypto policies as part of its G20 presidency in 2023.
Binance Sees 40% Surge In Institutional Investors
Binance experienced a significant uptick in institutional and corporate investors joining its platform this year.
In an interview with CNBC’s Lin Lin during the Token2049 conference in Singapore, CEO Richard Teng disclosed a 40% increase in such investors throughout 2024.
“Allocation into crypto by institutions is just at the tip of the iceberg,” Teng stated, indicating that the trend is only beginning.
He explained that many institutional investors are still conducting due diligence before fully committing to the crypto space.
Teng, who took over as CEO in November 2023, said the surge in onboarding reflects a growing confidence among big money players towards cryptocurrencies, including Bitcoin and other digital assets.
It is worth noting that Binance has faced increasing regulatory scrutiny worldwide.
Last year, the Commodity Futures Trading Commission (CFTC) filed charges against Binance for allegedly operating an illegal digital asset derivatives exchange and evading federal laws.
Similarly, the US Securities and Exchange Commission charged Binance Holdings LTD and ex-CEO Changpeng Zhao (CZ) for allegedly operating unregistered exchanges, broker exchanges, clearing houses, and the unregistered offer and sale of securities.
