India and the United States have joined forces to combat a crypto-funded drug ring worth $360 million. The Indian Enforcement Directorate (ED) and the Federal Bureau of Investigations (FBI) conducted a search operation in Uttarakhand, which led to the discovery of a cryptocurrency scam worth Rs 30 billion ($360 million).
The investigation, which began in August 2023, was initiated by the ED, but it was a tip from US authorities that ultimately led to the arrests. The tip implicated two Indian individuals who were allegedly involved in a drug trafficking operation connected to an international drug ring.
On April 27, the ED arrested Parvinder Singh and Banmeet Singh in Haldwani, Uttarakhand, following raids conducted the day before. The FBI also seized Rs 150 billion in digital currency assets linked to the operation.
According to the report, the group used online advertisements and dark web vendor marketplaces to facilitate drug sales. Cryptocurrency played a crucial role in the operation, as it was used to pay for drugs and launder earnings through crypto wallets. This allowed the organization to carry out illegal activities without intervention, providing anonymity and freedom from traditional payment systems.
The individuals involved used aliases across multiple dark web marketplaces, including Silk Road 1, AlphaBay, and Hansa. The FBI and ED have been working closely together, with the ED sharing important documents related to the investigation.
In addition to the arrests, the ED conducted a search of Parvinder’s residence in Haldwani to find electronic devices used in the alleged crimes, such as computers, tablets, or smartphones.
This case highlights the rise of crypto-based crime in India, a country that has seen significant crypto adoption despite the lack of clear regulations. The regulatory ambiguity surrounding cryptocurrencies has created a fertile ground for criminals, making it challenging for authorities to address and prosecute such crimes.
Gaurav Mehta, a social activist and CEO of Dharma Life, emphasized the need for regulation and education in India to prevent cryptocurrency scams and the exploitation of crypto technology by the criminal world. The involvement of foreign jurisdictions like the US is crucial in bringing order to how cryptocurrency-related crimes are handled.
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