Indian Authorities Bust Major Crypto Scam Network Linked to Terror Financing

Indian authorities have made a significant breakthrough in their efforts to combat cryptocurrency-related crimes with the recent busting of a major scam network.

The operation, which was carried out by the Gujarat Cyber Cell, targeted a global crypto scam operation linked to terror funding, dark web drug deals, and smuggling rings.

According to reports, the group funneled over ₹226 crore through digital assets, resulting in nine arrests. Investigators traced funds moved via USDT, OTC brokers, and hawala networks across multiple wallets.

The network's structure involved gathering scam money across India, which was then flowed into mule accounts and cash layers before being swapped for USDT using OTC brokers.

The use of blockchain technology allowed the scammers to break funds into smaller amounts and move them between wallets, exchanges, hawala routes, and dark web contacts, making it difficult to track the transactions.

However, authorities were able to identify the final destinations of the illicit funds, which reportedly include Hamas and Houthis.