In a significant crackdown, the Enforcement Directorate (ED) has frozen cryptocurrency accounts linked to the Chinese online gaming application FIEWIN. This marks a critical moment as the ED targets accounts associated with foreign nationals engaged in online gaming operations within India. The frozen accounts amount to approximately ₹25 crores, underscoring the scale of the investigation.
Investigation reveals large-scale financial fraud
The ED’s investigation has uncovered that around ₹400 crores were funnelled from India to China through this gaming app. Authorities believe that Chinese nationals operating FIEWIN exploited the Indian market to amass substantial profits, which were subsequently transferred to China, raising serious concerns about the app's impact on India's economy.
Arrests made in Kolkata
In connection with the case, four Indian nationals have been arrested by the ED’s Kolkata branch. An FIR was registered on May 16, 2023, at the Kosiapoor police station, citing sections 420, 406, and 120B of the IPC. These arrests are part of a broader effort to investigate the complex web of financial activities tied to the FIEWIN app.
Scheme involving Indian collaborators
The investigation revealed that Chinese nationals operated the FIEWIN app with the assistance of Indian collaborators. Funds collected from online gamers were funnelled into various bank accounts managed by individuals referred to as "recharge persons," who received commissions in return for their roles. Notably, Arun Sahu and Alok Sahu from Rourkela, Odisha, played key roles in converting the money into cryptocurrency.
Connections to Chinese nationals
The ED has identified additional key players, including Chetan Prakash, an engineer from Patna, who assisted in converting funds into cryptocurrency (USDT). Another significant figure, Joseph Stalin from Chennai, helped a Chinese national named Pai Pengyun from Gansu province become a co-director of his company, Studio 21 Private Limited. Eight Binance wallets linked to this operation have been traced back to China.
Ongoing communication with Chinese operators
Access to IP logs has revealed that Chinese nationals maintained communication with Indian associates via Telegram, indicating a coordinated effort in this extensive fraud scheme. The ED is committed to delving deeper into this investigation, aiming to dismantle the network behind this massive financial operation.
A strong response to foreign exploitation
The ED's actions reflect a determined effort to curb illegal financial flows and safeguard India's economic interests from foreign exploitation. This case highlights the ongoing challenges posed by online gaming platforms and the need for stringent regulatory measures to protect the Indian economy.
