ED Nabs Four in Major App-Based Betting Fraud Involving Chinese Nationals

The Enforcement Directorate (ED) has arrested four individuals under the Prevention of Money Laundering Act for their role in an app-based online betting fraud. The investigation revealed the involvement of Chinese nationals and substantial money laundering through cryptocurrency. The accused have been remanded in custody for 14 days.

The Enforcement Directorate (ED) has apprehended four individuals under the Prevention of Money Laundering Act (PMLA) in connection with a massive app-based online betting and gaming scam. The suspects, identified as Arun Sahu, Alok Sahu, Chetan Prakash, and Joseph Stalin, were involved in laundering funds accumulated through the fraudulent 'Fiewin' application, ED officials confirmed.

The investigation, initiated following an FIR lodged by Cossipore Police Station in Kolkata, revealed that Chinese nationals were operating the 'Fiewin' app with assistance from their Indian counterparts. The ill-gotten gains from duped users were funneled into various bank accounts, designated as 'recharge persons', in return for commissions, ED disclosed.

According to the ED, Arun Sahu and Alok Sahu from Rourkela, Odisha, served as 'recharge persons', converting funds received from the app into cryptocurrency. These were eventually laundered to Chinese nationals' wallets on Binance, a foreign crypto exchange. Chetan Prakash from Patna played a crucial role in converting these funds into cryptocurrency, while Joseph Stalin from Chennai facilitated bulk payouts to users through a company co-directed by a Chinese national.

ED's investigation estimates that approximately Rs 400 crore was generated from the 'Fiewin' fraudulent operations, later credited to eight Binance wallets controlled by Chinese nationals. Communication between the Chinese handlers and the accused primarily took place via digital platforms, specifically Telegram.

Following their arrest, all four suspects were produced before a Special Court (PMLA), which has granted the ED a 14-day custody for further interrogation. The investigation continues to uncover deeper links and operations within this elaborate fraud network, confirmed an official statement from the ED.

(With inputs from agencies.)