CHENNAI: The Enforcement Directorate (ED) has arrested four individuals, including Joseph Stalin, a software engineer from Chennai, under the Prevention of Money Laundering Act (PMLA), in connection with an alleged Rs 400 crore scam executed via the Fiewin online betting and gaming app.
ED investigation revealed that Chinese nationals were purportedly operating the app with the help of Indian nationals, including Stalin, who aided a Chinese national Pie Pengyun from Gansu province in becoming a co-director of the company owned by him, Studio 21 Pvt Ltd. The company's account was used for bulk payout services related to the app, which helped gain the confidence of gamers and encouraged larger bets, the ED said.
Approximately Rs 400 crore was generated from the Fiewin app-based fraud and credited into the Chinese nationals's Binance (global crypto exchange) wallets.
Stalin and three others — Arun Sahu, Alok Sahu, and Chetan Prakash — who were found to be involved in money laundering via the app were arrested.
The four were produced before a special court in Kolkata which granted the ED their custody for 14 days.
Further investigation by the economic intelligence agency is under way.