In one of the most significant crackdowns against crypto-fuelled crime, India and the United States coordinated in real time to seize digital assets worth $150 million linked to a global drug trafficking network.
The details were revealed in Paris on Friday through a handbook released by the Financial Action Task Force (FATF), Egmont Group, INTERPOL, and the United Nations Office on Drugs and Crime (UNODC).
Cross-Border Drug Network Exposed
The case dates back to 2022 when the U.S. Department of Justice (DOJ) reached out to India under the treaty on mutual legal assistance in criminal matters. Investigators had been tracking a drug syndicate run by two brothers who used encrypted communications and cryptocurrency wallets to distribute fentanyl, heroin, and other narcotics.
Probes later revealed the brothers controlled more than 8,500 bitcoins, valued at around $150 million, which were being channelled into laundering and financing their operations.
Acting on the American request, India’s Enforcement Directorate (ED) uncovered crucial records, including suspicious transfers worth over ₹5.54 crore routed through a domestic digital payments service. In an unusual step, U.S. officials even travelled to India to assist directly in the investigation, taking part in interviews of the accused.
The combined action led to arrests in April 2024, along with a prosecution complaint. Global watchdogs called it a big step in breaking down a cross-border drug network.
Cracking Down on Crypto Crimes
The FATF handbook described the case as a strong example of real-time international cooperation. It also noted how India has put new systems in place under the Prevention of Money Laundering Act (PMLA) to make cross-border assistance faster and more structured.
New online portals now allow quicker coordination with partner countries, similar to systems in the UK and Argentina.
The joint operation comes amid a spate of crypto-related probes at home. Just last month, the ED raided 11 locations in Delhi, Noida, Gurugram, and Dehradun in connection with a ₹260-crore crypto scam, where fraudsters posed as tech support agents for global firms.Â
Moreover, a parliamentary committee has also raised concerns over cryptojacking, where hackers secretly hijack personal devices to mine crypto, and warned that digital currencies are increasingly being used to fund human trafficking networks luring Indians abroad.
These episodes reflect a growing reality: while crypto assets have opened new opportunities, they are also fueling crimes that demand sharper, faster global coordination. The India-U.S. action, officials argue, is proof that such coordination can work.
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