Crypto Scam Battle: How Binance and law enforcement are cracking down scams and frauds in India

“It’s just another get-rich-quick scheme. I’d never fall for that.”

Most seasoned crypto enthusiasts believe they’re immune to scams. They know the red flags—phishing links, shady tokens, anonymous DMs. But what happens when the con wears the mask of legitimacy, is expertly orchestrated, and blends in with the everyday digital noise?

Welcome to the new era of crypto scams where fraudsters operate in plain sight, wrapping deception in the language of innovation, patriotism, and financial opportunity. From gaming apps to fake green energy projects, the cons are getting bolder, more sophisticated, and harder to spot.

The E-Nugget deception: When the game got real

In 2021, E-Nugget, a flashy gaming app promising high returns, lured thousands into its web. With real-money wagering, hefty commissions, and guaranteed payouts, it looked like the perfect side hustle. But behind the scenes, it was a bait-and-switch scheme masterminded by Aamir Khan and his network.

When the platform suddenly vanished, users were left with empty wallets and unanswered questions. The turning point came when India’s Enforcement Directorate (ED) teamed up with Binance’s Financial Intelligence Unit (FIU) division. By tracing digital footprints and freezing 42 crypto accounts holding nearly $6 million, they cracked the case wide open.

“By working closely with the ED, we were able to dismantle a major financial scam and protect future victims,” said Jarek Jakubcek, Head of Law Enforcement Training at Binance.

Binance’s blockchain forensics played a key role in recovering funds and restoring confidence.

Mangalore’s Fiewin scam: When the money stopped moving

Fast forward to 2024, and the cons had evolved.

Fiewin, another gaming app—this time based in Mangalore—offered users simple games and quick payouts. But once players racked up sizable winnings, the withdrawals mysteriously stopped.

What looked like technical issues turned out to be a Rs 400 crore ($48 million) fraud, involving crypto wallets, “money mule” bank accounts, and a laundering network spanning multiple countries.

With analytical support from Binance’s Financial Intelligence Unit (FIU), the ED followed the digital trail, leading to several arrests. Fraudsters operated via encrypted messaging apps and remote networks to evade detection.

“Binance’s specialized investigation team provided critical analytical support,” noted an ED representative. “Public-private collaboration is essential to tackling crimes of this scale.”

The investigation is ongoing, but its message is clear: organized scams can be dismantled through sharp digital sleuthing and strong partnerships.

Mumbai’s solar scam: Fake power, real consequences

In October 2024, a con cloaked in green credentials duped hundreds.

M/s Goldcoat Solar, a fake entity, claimed to be part of a government-backed renewable energy mission. The main selling point of the scam was to encourage people to invest in a national project aiming to expand solar capacity to 450 GW by 2030, and earn patriotic profits. The scam gained traction through social media, where fraudsters impersonated government officials and shared fake testimonials and earnings screenshots.

Investigations by the Delhi Police, in partnership with Binance, exposed a massive fraud operation. The syndicate used forged SIM cards—activated under stolen identities—to facilitate scam communications. Some SIMs were even sent overseas to keep the ruse running.

“We provide timely and crucial support in financial investigations,” said Jakubcek.

Over 100,000 USDT in crypto assets was seized, and several arrests were made. The operation had laundered victim funds through multiple accounts, even converting a portion into cryptocurrency to mask its origins.

A turning point: Crypto crimes on the decline

While scams like E-Nugget, Fiewin, and Goldcoat Solar revealed cracks in the system, there's good news: crypto crime is falling.

According to the 2025 Chainalysis Crypto Crime Report, illicit crypto activity dropped significantly in 2024. The value received by criminal wallets fell to $40.9 billion, and the share of transactions linked to illicit activity shrank to 0.14%, down from 0.61% in 2023.

This progress reflects the growing maturity of the crypto ecosystem, where users, platforms, regulators, and law enforcement are now working in sync to protect digital finance.

Binance’s role in building a safer crypto future

The decline in crypto-related crime signals a turning point for the industry. Binance’s unwavering focus on security, compliance, and global partnerships has been instrumental in fostering a safer digital ecosystem. In 2024 alone, the company launched several key initiatives that set a new standard for protection.

One such initiative is the Risk Sniper channel on Binance Square—a real-time alert system that flags high-risk crypto addresses and links. Backed by over 50 machine learning models, Binance’s AI-driven risk management enabled rapid responses to threats, helping recover $9.1 million in stolen funds and blacklist over 47,000 malicious addresses in a single year.

The efforts didn’t stop there. Binance also facilitated the recovery of $88 million in assets tied to hacks, exploits, and thefts—including incidents involving external platforms. The company’s commitment to collaboration with global authorities is evident in its response to more than 64,800 law enforcement requests, assisting over 14,800 registered officials across various jurisdictions.

A standout example was the dismantling of a multimillion-dollar criminal syndicate in Hong Kong, where Binance’s forensic insights were pivotal in tracing illicit fund flows across borders. Through the World Economic Forum’s Cybercrime Atlas initiative, Binance helped verify over 10,000 actionable data points and participated in two successful cross-border disruption campaigns.

The road ahead

All these milestones point to a powerful message: while scams may evolve in sophistication, so too does the crypto ecosystem’s ability to detect, disrupt, and dismantle them. But the battle isn’t over. Continued investment in advanced technologies, global cooperation, and user education will remain critical in building a resilient future.

So the next time you hear about a “guaranteed return” or a “once-in-a-lifetime offer,” pause and ask: What’s the catch?

Because asking the right question could save you more than just money.