An international virtual currency vendor, Anurag Pramod Murarka, from India, was sentenced to prison for 10 years by U.S. District Judge Gregory Van Tatenhove for involvement in the money laundering of criminal proceeds through a sophisticated operation involving crypto and a hawala system.
According to recent court records, Anurag Pramod Murarka was running his business under two monikers -“elonmuskwhm” and “la2nyc.” He operated an international money laundering business on darknet marketplaces from April 2021 to September 2023. However, Murarka and his co-conspirators have laundered more than $20 million in criminal proceeds.
According to the press release by the United States Attorney’s Office, Murarka used to advertise his services online, on the dark net marketplaces, as a money laundering service. In response to those advertisements and negotiating exchange rates, customers would contact him through the code messages.
Once the exchange rate had been finalized, Murarka, who was located in India, directed his customers to send cryptocurrency to certain cryptocurrency addresses. Murarka then worked through a hawala operation that was developed out of India that would arrange for the cash to be delivered to his employees who were based in the United States.
Hawala is considered illegal in the U.S. because it cannot be easily regulated and is associated with money laundering and other crimes.
According to the reports, Murarka’s U.S.-based employees would package the cash in different ways and then deliver it to their clients through unique methods, including hiding it in the pages of books and sealing it in multiple envelopes.
The FBI and the U.S. Postal Inspection Service investigation has revealed that Murarka knowingly worked with clients who were involved in illegal and criminal activities such as drug trafficking and computer hacking.
After his arrest, authorities seized millions in illegal funds and took control of his online accounts. Authorities used them to block $1.4 million in financial fraud and arrogate fraudulent drugs and equipment.
Carlton S. Shier, IV, U.S. Attorney for the Eastern District of Kentucky, said, “This case highlights the global scope of cybercrime, as well as the demand for diligence and collaboration in fighting money laundering—a devastating second layer of criminal conduct.”
Additionally, after his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
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