From Surat to Pakistan: ₹200 Crore Crypto Laundering Case Exposed

Surat Man Held for Sending ₹10 Crore in USDT to Pakistan Crypto Wallet

Crypto Scam in India: Gujarat CID-Crime has unearthed a big cross-border crypto laundering ring. A Surat man was apprehended while converting ₹10 crore into USDT and sending it to a wallet in Pakistan.

What's The Story?

Gujarat CID-Crime has in a breakthrough, successfully breaking a huge cybercrime network that was transferring illegal funds across borders using cryptocurrency. 

The primary suspect, Chetan Gangani, who lived in Surat, was detained because of assisting fraudsters in transferring ₹10 crore in mule bank accounts to USDT (Tether) and transferring it to a crypto wallet linked to Pakistan.

Investigators found out that Gangani was a member of a larger network of six others in Gujarat who operated approximately 100 mule accounts in districts such as Morbi, Surendranagar, Amreli, and Surat. 

Source: Wiseadvise X

The money obtained in these accounts was used to launder the funds acquired through various online scams, including digital arrest scams, investment frauds, task scams, and pseudo part-time employment schemes.

It is estimated that the network laundered more than ₹200 crore to cybercriminals located in Dubai and Pakistan. The Pakistan wallet was reported to have ₹29 crore, of which ₹10 crore was found to have originated in Gujarat. 

Gangani received a low commission of 0.10% per USDT transaction, which is indicative of how locals are usually used to transfer money internationally by international syndicates.

Technical and Investigative Information.

• A comprehensive digital probe of the Gujarat CID Cyber Crime Center of Excellence, which monitored seven layers of money flow between Indian bank accounts and foreign crypto wallets. 

• The authorities found that Gangani exchanged rupees into USDT using his Bitget wallet and transmitted the money outside the country. 

• The probe also established that the Binance wallet based in Pakistan had been funded by Indian sources to the tune of ₹25 crore and above. 

• With the help of sophisticated blockchain analytics and cyber forensics, the CID team was able to track every transaction step, revealing the sophisticated laundering system. 

• The investigation is still in progress, and additional arrests and international cooperation are likely to be made in the next few days.

Source: Karan Singh X

Official Statements

Gujarat Deputy Chief Minister Harsh Sanghavi applauded the CID team that busted the racket and said that investigators followed the money trail to the last seven layers to find direct connections with Pakistan. He testified that the network was functional in various districts in Gujarat and that it was linked to Dubai-based cyber criminals.

How and Why Crypto Fraud and Illicit Activities Are on the Rise?

• The problem of fraud is increasing due to the option of fast, cross-border, and semi-anonymous transactions that digital assets provide. 

• Criminals take advantage of the absence of stringent regulations, particularly on international transactions with weaker KYC standards. 

• Stablecoins such as USDT are the most favored in laundering because they are stable and easily transferable. 

• A 2024 Chainalysis report said that out of all illicit crypto transactions, more than 60% were in the form of stablecoins, despite the fact that they constitute 10% of the total volume of crypto trade in the world. 

• This asymmetry is indicative of the fact that fraudsters are turning to the use of crypto to move illegal money more and more.

How to Be Aware?

Always visit trusted websites, never leave bank or cryptocurrency related information, and report suspicious activity as soon as possible. Education and vigilance can make people guard themselves against internet fraud and cyber scams.