New Delhi: The Enforcement Directorate (ED) has seized Rs 24 crore in cryptocurrency belonging to three Chinese nationals linked to FIEWIN, the gaming app that is being investigated for allegedly funnelling a whopping Rs 400 crore from India to China.
Recently, four Indian nationals were also arrested by the ED in connection with the case. The federal agency has also identified the Chinese nationals linked with the app and also released pictures of their passports.
The ED’s investigation revealed that Chinese nationals exploited this gaming platform to generate substantial profits, amassing nearly Rs 400 crore, which was then sent to China. This operation has exposed a major conspiracy aimed at undermining India’s economy by draining out funds.
In total, the ED has seized three crypto accounts belonging to three Chinese nationals, further exposing the extent of the elaborate scheme to exploit India’s financial system. The crackdown is part of a broader effort to tackle illegal financial activities.
What is the FIEWIN gaming app case?
Recently, the ED conducted multiple raids across the country in its probe into the FIEWIN gaming app, leading to the arrest of several Indian nationals. This investigation revealed how approximately Rs 400 crore had been funnelled from India to China through this gaming app.
The ED in Kolkata had arrested four individuals in connection with the online betting and gaming fraud linked to the app. A case was registered on May 16 last year at the Koshipur police station under Indian Penal Code (IPC) sections 420, 406, and 120B for fraud and conspiracy.
The investigation uncovered that Chinese nationals were operating the app along with some Indians. Funds collected from online gamers via the FIEWIN app were deposited into the bank accounts of various people, referred to as “recharge persons.” In return, the app owners paid commissions to these recharge individuals.
Arun Sahu and Alok Sahu, residents of Rourkela in Odisha, were identified as recharge persons who facilitated the conversion of money received from the app into cryptocurrency. They laundered the earnings from the app by depositing the cryptocurrency into the wallets of Chinese nationals on foreign exchanges, such as Binance.
Chaitanya Prakash, an engineer from Patna, Bihar, played a significant role in this money laundering operation by assisting recharge persons in converting cash into cryptocurrency (USDT).
Another individual, Joseph Stalin, helped a Chinese national named Pai Pengyun from Gansu province become a co-director of his company, Studio 21 Private Limited. Joseph, a software engineer based in Chennai, used the company’s bank account to handle large payments related to the app. This strategy helped build trust with initial gamers, encouraging them to place larger bets.
The payments made to the app were subsequently converted into cryptocurrency and transferred to Joseph Stalin’s Binance account, controlled by the Chinese operators. In exchange, they sold the cryptocurrency on Binance using a peer-to-peer (P2P) mode to convert USDT back into Indian rupees.
So far, the investigation has revealed that approximately RS 400 crore was generated through the FIEWIN app-based fraud, with the money deposited into eight Binance wallets registered under the names of Chinese nationals. Access to IP logs indicated that these wallets were being operated from China.
Chinese nationals communicated with Arun Sahu, Alok Sahu, Chaitanya Prakash, and Joseph Stalin via Telegram, indicating their active roles in this scam. All four accused individuals have since been arrested.
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