ED files fresh chargesheet against Chinese gaming app operating during Covid period

The Enforcement Directorate has filed a fresh chargesheet against an online gaming app that was being operated by Chinese nationals in India during the Covid pandemic, thereby “defrauding” players of ₹400 crore.

The first prosecution complaint (chargesheet) against the application named ‘Fivin’ was filed by the federal probe agency in October 2024 before a Kolkata-based Prevention of Money Laundering Act (PMLA) court.

The agency had recently arrested three people and attached assets worth ₹26 crore.

The ED said in a statement that the supplementary charge sheet was filed before the same court on December 8 and named two individuals – Utkarsh Arya and Sujit Kumar Jha – and 12 companies “beneficially owned” by Jha as accused.

The federal investigation agency alleged that these companies were used as a corporate structure to hide the proceeds of crime generated by the Fiwin gaming app operators, and presented it as “business income”.

According to ED, ‘Fewin’ came into existence during the Covid period in 2020 and remained operational till June 2023.

The probe agency said, “This gaming app was introduced as an app to earn money fast and easily and was marketed through YouTube, Facebook and other digital mechanisms. The app included simple games like minesweeper, color prediction, which were based entirely on luck without any role of the player’s skill.”

The investigation revealed that Chinese nationals were running the app with the help and support of Indian nationals, the agency said. The accused and their associated companies used to transact the proceeds of crime with Chinese nationals, receiving and sending funds through cryptocurrency.

According to the ED investigation, the funds received from gullible online gamers were deposited in the bank accounts of various people (called recharge persons) who allowed the use of their accounts to the app owners in exchange for a fixed commission.

Approximately ₹400 crore was generated from the Feewin app “fraudulently” and deposited in Binance wallet (a global crypto exchange) in the name of Chinese citizens. The ED found that the Chinese nationals used to communicate and give instructions to the accused through digital platforms, especially Telegram groups.

The money laundering case is related to an FIR lodged at Cossipore police station in Kolkata.