Furthermore, authorities claimed the search uncovered details about CPIPL solely acting as an agent of Coda Payments Singapore and remitting the collected money back to the parent company. The action comes after multiple FIRs were registered against Free Fire.
ED investigates Garena Free Fire and Coda Payments India for money laundering
Government authorities alleged that CPIPL, which processed and collected payments from Garena Free Fire, Teen Patti Gold, Call of Duty, and others, resorted to inappropriate deductions. These deductions were mainly from unsuspecting children using in-game tokens.
Further, it has been claimed that developers such as Garena and CPIPL structured the payment system accordingly so that after the first successful transaction, a notification would pop-up seeking authorization to make all future payments seamless without authentication.
Since younger audiences are unaware of these nuances, they typically grant permission without fully understanding the scope of the outcome. Authorities claim the company exploited the nievity of their player base.
Authorities said that during the investigation, they found CPIPL was funneling money from the buying and selling of digital tokens to the parent company in Singapore. Coda Singapore manages the operations of Codashop, and there is no real sale or purchase of digital material by CPIPL.
The ED’s statement also revealed that Garena Free Fire does not have a company or presence in India and is based out of Singapore.
A statement from ED about the remitted money read:
Furthermore, the agency added the following about freezing the funds:
Further investigation of the matter is underway. Audiences should closely follow the social media handles of respective agencies for real-time information.
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