CHENNAI: The Enforcement Directorate (ED) has arrested four persons, including Joseph Stalin, a Chennai-based software developer, under the Prevention of Money Laundering Act (PMLA) in connection with an alleged Rs 400 crore fraud carried out through online betting and gaming app Fiewin.
Investigations by the ED revealed that Chinese nationals allegedly operated the app with the help of Indian nationals, including Stalin, who helped Chinese national Pie Pengyun from Gansu province to become co-director of the company he owned, Studio 21 Pvt Ltd. The firm’s account was used for bulk withdrawal services related to the app, which helped gain players’ trust and encourage higher stakes, the ED said.
The Fiewin app-based scam generated around Rs 400 crore and credited it to the wallets of Chinese citizens on Binance (global crypto exchange).
Stalin and three others – Arun Sahu, Alok Sahu and Chetan Prakash – who were found to be involved in money laundering through the app were arrested.
The four were produced before a special court in Calcutta, which granted the ED custody of them for 14 days.
Further investigations by the economic intelligence service are ongoing.
