Four Arrested in Kolkata for Online Betting Fraud Involving Chinese Nationals
Kolkata (West Bengal) [India], August 16
The Enforcement Directorate (ED) has arrested four individuals under the Prevention of Money Laundering Act (PMLA) for their involvement in an app-based online betting and gaming fraud. The accused are Arun Sahu, Alok Sahu, Chetan Prakash, and Joseph Stalin.
Background of the Case
The investigation began after an FIR was registered by the Cossipore Police Station in Kolkata. The FIR was filed under various sections of the Indian Penal Code (IPC) against unknown individuals for cheating and conspiracy through the online gaming app ‘Fiewin’.
Details of the Fraud
The ED’s investigation revealed that Chinese nationals were operating the app with the help of Indian nationals. The money collected from online gamers was deposited into the bank accounts of various individuals, known as ‘recharge persons’, who allowed the use of their accounts for a commission.
Arun Sahu and Alok Sahu from Rourkela, Odisha, acted as ‘recharge persons’. They converted the funds received into cryptocurrency and laundered it to the wallets of Chinese nationals on the foreign crypto exchange Binance.
Chetan Prakash, an engineer from Patna, Bihar, played a key role by helping ‘recharge persons’ convert Indian Rupees (INR) into cryptocurrency (USD). Joseph Stalin, a software engineer from Chennai, assisted a Chinese national named Pie Pengyun to become a co-director of Studio 21 Pvt Ltd, a company he owned. This company was used for bulk payout services related to the app, which helped gain the confidence of gamers and encouraged larger bets.
Financial Details
The funds for payout services were received by Joseph Stalin as cryptocurrency in his Binance account from wallets controlled by Chinese handlers. He then converted the cryptocurrency into INR by selling it through P2P mode on the foreign crypto exchange. The investigation revealed that approximately Rs 400 crore was generated from the Fiewin app-based fraud and credited into eight Binance wallets owned by Chinese nationals. These wallets were operated from China, as shown by the access IP logs.
Arrests and Legal Proceedings
The Chinese nationals communicated with the accused through digital means, especially Telegram groups. The ED stated, “Since all four accused played an active role in the Fiewin app-based scam and were involved in money laundering, they were arrested and produced before the Special Court (PMLA). The court has granted the ED custody of all four accused for 14 days.”
Further investigation is ongoing.
Doubts Revealed
Enforcement Directorate (ED) -: The Enforcement Directorate (ED) is a government agency in India that investigates financial crimes like money laundering and fraud.
Kolkata -: Kolkata is a big city in India, located in the state of West Bengal. It is known for its rich culture and history.
Online Betting Fraud -: Online betting fraud is when people use the internet to trick others into betting money on games or events, but the games are rigged or the money is stolen.
Chinese Nationals -: Chinese nationals are people who are citizens of China, a country in East Asia.
Laundering -: Laundering money means making illegally-gained money look like it comes from legal sources. It’s like hiding the bad money to make it look good.
Rs 400 crore -: Rs 400 crore is a large amount of money in Indian currency, where 1 crore equals 10 million rupees. So, Rs 400 crore is 4 billion rupees.
ED Custody -: ED custody means that the people arrested are being held by the Enforcement Directorate for questioning and investigation.
