India’s Enforcement Directorate (ED) has joined forces with the Federal Bureau of Investigation (FBI) in the United States to dismantle a massive drug trafficking operation valued at approximately $360 million, facilitated through cryptocurrencies.
The operation, which was initiated in 2023, culminated in the recent arrest of two individuals, Parvinder Singh and Banmeet Singh, hailing from Haldwani, Uttarakhand. Following tips from the FBI, the ED conducted raids on April 27, leading to the apprehension of the accused.
Reports indicate that the Singh duo operated through dark web platforms such as Silk Road 1, AlphaBay, and Hansa, leveraging online advertisements to promote the illegal sale of narcotics. They established a network of distributors and facilitated transactions using various cryptocurrencies, subsequently laundering the funds through multiple digital wallets.
The FBI has already recovered digital currencies worth INR 1500 crore (approximately $180 million) associated with the case, while the ED has seized crucial documents related to the illicit operation.
This incident is not isolated, as the ED has been actively pursuing cases of crypto-related fraud. In a separate investigation, the agency probed Raj Kundra, a prominent businessman and spouse of Bollywood actress Shilpa Shetty, for his alleged involvement in an $800 million Ponzi scheme named ‘Gain Bitcoin.’ Launched in 2017, the scheme promised investors a monthly return of 10% in Bitcoin.
These instances underscore the increasing prevalence of illicit crypto activities in India. In response, the ED has taken legal action against 299 entities under the nation’s anti-money laundering laws, particularly focusing on fraudulent crypto-mining ventures.
To address such risks, Indian regulators have issued compliance notices to numerous cryptocurrency exchanges operating within the country, aligning with the Prevention of Money Laundering Act (PMLA) to enhance oversight and mitigate illicit activities within the crypto space.
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