The investigation into a case involving the illegal use of cryptocurrencies was initiated in 2023, and recently resulted in arrests following a tip provided by the FBI to the ED. The two individuals, Parvinder Singh and Banmeet Singh, from Haldwani, Uttarakhand, were apprehended on April 27 after raids conducted by local law enforcement. It is alleged that the accused operated through dark web marketplaces like Silk Road 1, AlphaBay, and Hansa, as well as through online advertisements, to promote the illicit sales of drugs.
They established a network of distributors and distribution cells and facilitated payments using various cryptocurrencies, laundering the funds through multiple cryptocurrency wallets. The FBI has already recovered INR 1500 (approximately $180 million) worth of digital currencies linked to the case, and the ED has confiscated crucial documents related to the operation. In a separate incident in April, the ED uncovered another illicit operation involving cryptocurrencies, named ‘Gain Bitcoin,’ which was launched in 2017 and promised a 10% monthly return to investors, payable in Bitcoin.
These cases are part of the increasing instances of illicit use of cryptocurrencies in the country. The charges in this ongoing investigation are in response to fraud involving fake crypto-mining ventures.