ED collaborates with FBI in India to unveil $360 million drug trafficking scheme employing cryptocurrency
India’s Enforcement Directorate (ED) has joined forces with authorities in the United States to crackdown on a drug trafficking operation worth approximately $360 million involving cryptocurrencies.
As per local reports, the ED partnered with the Federal Bureau of Investigation (FBI) and apprehended two individuals connected to the operation. The investigation was initially launched in 2023, but the arrests were made last week after the FBI tipped off the ED.
On April 27, Parvinder Singh and Banmeet Singh from Haldwani, Uttarakhand, were arrested following raids conducted by local law enforcement.
The accused allegedly conducted their activities through dark web marketplaces such as Silk Road 1, AlphaBay, and Hansa, and also used online advertisements to promote illegal drug sales. They also established a network of distributors and distribution cells, and facilitated payments using various cryptocurrencies.
The funds were subsequently laundered through multiple cryptocurrency wallets.
The FBI has already recovered digital currencies worth approximately $180 million linked to the case. The ED has also seized crucial documents related to the operation.
In addition to this case, the ED uncovered another illicit operation involving cryptocurrencies in April. According to a report on April 19, the ED investigated Raj Kundra, a prominent businessman and husband of Bollywood actress Shilpa Shetty, for his alleged involvement in an $800 million Ponzi scheme called ‘Gain Bitcoin’.
Launched in 2017, the scheme promised investors a monthly return of 10% in Bitcoin.
These scams are part of the increasing number of cases involving illicit use of cryptocurrencies in India. In March 2024, the ED filed charge sheets against 299 entities under India’s anti-money laundering laws in response to fraudulent activities related to fake crypto-mining ventures.
To address these risks, regulators in India have issued compliance notices to several cryptocurrency exchanges operating in the country in accordance with the Prevention of Money Laundering Act (PMLA).
