How Binance and Law Enforcement Are Tackling Crypto Scams in India: A New Era of Digital Safety

Crypto scams in India are on the decline, thanks to stronger security systems and unprecedented collaboration between platforms like Binance and law enforcement agencies.

For many seasoned crypto users, scams may seem obvious—phishing links, suspicious tokens, or anonymous DMs. But the new generation of scams operates differently. Today’s fraudsters don the cloak of legitimacy, craft persuasive narratives, and blend into digital noise, making detection harder than ever.

From fake gaming apps to bogus green energy projects, these digital frauds are evolving. However, proactive interventions by Binance and Indian authorities are turning the tide.

The E-Nugget Scam: When a Game Turned Into a Nightmare

In 2021, E-Nugget, a flashy gaming app, promised hefty returns on real-money wagers. Thousands signed up, hoping to cash in on the “side hustle” dream. But behind the scenes, it was a well-orchestrated Ponzi scheme led by Aamir Khan and his associates.

When the platform vanished, so did user funds. But the turning point came when the Enforcement Directorate (ED) joined forces with Binance’s Financial Intelligence Unit (FIU). By tracing crypto transactions, 42 accounts holding nearly $6 million were frozen, and the case was cracked open.

“By working closely with the ED, we dismantled a major scam and safeguarded users,” — Jarek Jakubcek, Head of Law Enforcement Training, Binance.

The Fiewin Fraud: A Rs 400 Crore Blow from Mangalore

In 2024, Fiewin, another gaming platform based in Mangalore, lured users with simple games and instant rewards. But when winnings surged, withdrawal options mysteriously disappeared.

Soon, a Rs 400 crore ($48 million) scam was uncovered. The culprits used crypto wallets, fake bank accounts, and cross-border laundering networks. With Binance’s analytical backing, ED traced the digital trail and made multiple arrests.

“Binance’s investigation team played a critical role,” said an ED official. “Public-private cooperation is vital.”

Mumbai's Green Energy Scam: When Patriotism Fueled Deception

In October 2024, M/s Goldcoat Solar posed as a government-linked renewable energy project, claiming to contribute to India's 450 GW solar goal by 2030. The scam was marketed as a patriotic investment opportunity, gaining traction across social media.

Fraudsters used forged SIM cards—some activated with stolen IDs and shipped abroad—to run the operation. With Binance’s help, the Delhi Police uncovered the fraud. Over 100,000 USDT in crypto assets was seized, and arrests were made.

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

Crypto Crimes Are Dropping: A Positive Shift

The good news? Crypto-related crime is declining.

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

This shift signals a maturing ecosystem where platforms, users, regulators, and law enforcement are aligning to secure digital finance.

Binance's Role: Building a Safer Crypto Ecosystem

In 2024, Binance launched several initiatives that raised the bar for crypto security and user protection:

• Risk Sniper Channel on Binance Square: A real-time alert system powered by 50+ AI models that flags high-risk addresses and phishing links.

• $9.1 million in stolen assets were recovered in 2024 alone.

• 47,000+ malicious addresses were blacklisted.

• $88 million in stolen assets recovered from exploits and hacks.

• Binance responded to 64,800+ law enforcement requests, helping over 14,800 registered officials globally.

• Played a key role in disrupting a criminal syndicate in Hong Kong and supporting the Cybercrime Atlas initiative by the World Economic Forum.

What This Means for Users and the Future of Crypto

While fraudsters continue to evolve their strategies, the crypto community is responding with smarter tools, stronger laws, and better education.

Binance’s efforts show that security and innovation can go hand in hand. But the fight isn’t over. Continued investment in AI-driven threat detection, cross-border cooperation, and user awareness will be essential.

Next time you hear about a “guaranteed return” or “once-in-a-lifetime opportunity,” ask the critical question: What’s the catch?

Because in crypto, asking the right question could save you more than just money—it could save your entire portfolio.

Tags: #CryptoIndia #Binance #ScamPrevention #DigitalFinance #Web3Security #BlockchainNews