Gujarat Police uncovered a Rs. 226 crore cryptocurrency network allegedly linked to drug trafficking, hawala transfers, cyber fraud, and global terror funding. Investigators arrested nine people and traced funds through Monero, USDT, dark web platforms, and wallets reportedly connected to Hamas, Houthis, and other sanctioned entities.
The Gujarat Cyber Centre of Excellence has uncovered an Ahmedabad-based cryptocurrency network worth nearly Rs. 226.54 crore. Officials said the case involves alleged drug trafficking, cyber fraud, hawala transfers, and terror financing links across several countries.
The probe led to the arrest of nine people from Ahmedabad, Mumbai, and Karnal. Investigators said the accused used crypto wallets, Monero, USDT conversion, and peer-to-peer trading to move funds linked to illegal activities.
Investigators Trace Crypto Trail From Dark Web Platform
The investigation began after the Cyber Centre’s technical team flagged a suspicious Indian IP address. Officials said the IP address had received digital funds from ARTEMISLAB.CC, an alleged dark web platform linked to illegal drug sales.
Investigators then traced the funds to a wallet linked to Ahmedabad resident Mohsin Sadiq Molani. Further blockchain checks led them to more linked wallets across India. Officials said the network handled large crypto flows through local traders, bank accounts, and hawala operators.
According to police, the accused converted “dirty crypto” into USDT and cash. However, investigators described the terror and drug links as part of an ongoing probe, with formal court proceedings still required for seized and frozen assets.
Monero, USDT, and Hawala Used to Move Funds
Officials said the accused used privacy coin Monero to hide sender details, receiver details, and transaction values. Investigators alleged that Monero transactions worth nearly Rs. 193 crore formed a major part of the money trail.
Police also said two Monero wallets moved more than Rs. 2 crore through hidden channels. The network allegedly used USDT conversion, peer-to-peer bank transfers, and hawala routes to move funds between India and overseas handlers.
The Cyber Centre said several bank accounts linked to the accused matched 935 complaints filed on the National Cyber Crime Reporting Portal. These complaints reportedly involved Binance P2P-linked accounts connected to fraud proceeds.
Investigators estimate that 30% to 40% of the Rs. 226 crore under review came from illegal activity. The remaining amount allegedly came from peer-to-peer crypto trading, futures trading, and hawala-based cash movement.
Officials Claim Hamas, Houthi, and Drug Network Links
Officials alleged that one accused, Mohammad Zubair Mohammad Hussain Popatia, operated a wallet earlier frozen by Israel’s National Bureau for Counter Terror Financing in 2025. Investigators said the wallet had alleged links to entities connected with Hamas.
Police also claimed that some wallets in the network matched entities sanctioned by the US Office of Foreign Assets Control. These included alleged links to Yemen’s Ansar Allah, Iran’s IRGC-QF, and sanctioned crypto exchange Garantex.
Investigators said Mohsin Molani allegedly received drug orders from UK customers through Telegram groups and online platforms. The orders were reportedly routed to Popatia, who police believe operated part of the supply chain from Dubai.
Another accused, Isam Salman Ghulam Ali Ansari, is lodged in a UK prison after a 2024 conviction for drug trafficking and money laundering. Investigators suspect the network continued operations while he remained in custody.
Police have filed charges under the Bharatiya Nyaya Sanhita and the Information Technology Act. Authorities said the probe continues across India and abroad as teams trace crypto wallets, hawala routes, frozen assets, and properties allegedly bought with proceeds of crime.
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