Four arrested in New Delhi for alleged involvement in INR 400 crore online betting and gaming app fraud on Friday, suspected to have ties to Chinese individuals, according to the Enforcement Directorate(ED).
Four individuals – Arun Sahu, Alok Sahu, Chetan Prakash, and Joseph Stalin are taken into custody by ED under the Prevention of Money Laundering Act (PMLA) in connection with the ‘Fiewin’ app case, according to an official statement. The money laundering investigation originated from an FIR filed at Kolkata’s Cossipore police station, alleging cheating and conspiracy against unidentified individuals who targeted online gamers through the ‘Fiewin‘ app.
Approximately INR 400 crore, illicitly obtained through the Fiewin app scam, was transferred to eight Binance cryptocurrency wallets owned by Chinese nationals. Investigations revealed that these wallets were accessed and operated from the Chinese mainland, based on IP log analysis.
“The Chinese nationals communicated with and instructed the four accused persons through digital communication, especially groups on Telegram (social media app),” According to ED
A special PMLA court in Kolkata has remanded them to 14 days of ED custody, although the exact date of arrest was not disclosed.
Chinese nationals operated the Fiewin app with active help and support from Indian nationals, exploiting gullible online gamers. The funds mobilized through the app were deposited into the bank accounts of designated ‘recharge persons’, who received certain commissions in lieu of allowing the app owners to use their accounts, according to the ED investigation.
The ED discovered that Arun Sahu and Alok Sahu, residing in Rourkela, Odisha, served as ‘recharge persons’ for the app, receiving funds in their bank accounts. These funds were then converted into cryptocurrency and used to ‘launder’ money, which was subsequently deposited into the Binance wallets of Chinese nationals, a foreign cryptocurrency exchange.
Chetan Prakash, a Patna-based engineer, played a crucial role in money laundering by assisting ‘recharge persons’ in converting Indian rupees into cryptocurrency, ED stated. Additionally, Joseph Stalin, a Chennai-based software engineer, facilitated a Chinese national, Pie Pengyun from Gansu province, to become a co-director of Studio 21 Pvt Ltd, a company owned by Stalin.
According to the ED, Pie Pengyun utilized the account of Studio 21 Pvt Ltd for bulk payout services related to the Fiewin app, which initially helped build trust among gamers and subsequently encouraged them to place larger bets.
“The funds used for payout services were received by Joseph Stalin as cryptocurrency in his Binance account from the wallets controlled by the Chinese handlers. He in turn converted cryptocurrency into INR (Indian Rupee) by selling the crypto through P2P mode on Binance,” claimed by the agency.
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