The Enforcement Directorate (ED) has arrested four individuals, including Joseph Stalin, a software engineer from Chennai, under the Prevention of Money Laundering Act (PMLA). The arrests are linked to an alleged ₹400 crore scam executed through the Fiewin online betting and gaming app.
The ED’s investigation has uncovered that the Fiewin app was purportedly operated by Chinese nationals with the assistance of Indian collaborators. Joseph Stalin is alleged to have played a key role in aiding a Chinese national, Pie Pengyun from Gansu province, by helping him become a co-director of Studio 21 Pvt Ltd, a company owned by Stalin. The company’s account was reportedly used for bulk payout services connected to the app, which facilitated transactions and helped build trust among gamers, encouraging them to place larger bets.
According to the ED, approximately ₹400 crore was generated through the fraudulent activities on the Fiewin app and was subsequently credited into Binance wallets belonging to the Chinese nationals involved. Binance is a well-known global cryptocurrency exchange platform.
In addition to Stalin, the ED has also arrested Arun Sahu, Alok Sahu, and Chetan Prakash, who are believed to have been involved in laundering the illicit funds through the app. The four individuals were presented before a special court in Kolkata, which granted the ED custody of the accused for 14 days.