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Market News

India’s ED Raids Target Crypto Links in Multi-State Drug Case

Police arrested Madhupan Sasikala and an associate after seizing ₹1.1 crore worth of drugs, including 1,825 LSD blots.

Written By Jalpa Bhavsar
Fact Checked by Dishita Malvania
Published 2026-01-17·Updated 9 months ago
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India’s ED Raids Target Crypto Links in Multi-State Drug Case

Key Highlights

  • The ED carried out raids at 26 locations across seven states, targeting an international drug trafficking and money-laundering syndicate.
  • The probe stems from a Goa ANC case in which ₹1.1 crore worth of drugs, including 1,825 LSD blots, were seized earlier.
  • Investigators uncovered a multi-state syndicate using courier networks and digital platforms to distribute narcotics.

The Enforcement Directorate (ED) on Tuesday conducted coordinated search operations at 26 locations across the country. The searches were carried out in Goa, Maharashtra, Kerala, Tamil Nadu, Karnataka, Odisha, and the Delhi-NCR.

The action is part of an ongoing investigation into an international drug trafficking and money-laundering syndicate. Officials said the probe has uncovered significant links to cryptocurrency, with digital assets allegedly being used to move and hide illicit funds.

Based on local reports, the action targets a network allegedly involving one Madhupan Suresh Sasikala and others. The case has been registered under the Prevention of Money Laundering Act (PMLA), 2002, with investigators closely tracking the crypto transactions and digital payment trails used to move and conceal proceeds from narcotics sales.

Officials said the searches followed months of investigation that revealed a well-organized inter-state drug network that relied not only on physical delivery systems but also on digital platforms, online marketplaces, and cryptocurrency channels to distribute narcotics and launder money.

Narcotic origins and arrests

The probe began with an FIR filed by the Anti-Narcotics Cell (ANC) of the Goa Police under the NDPS Act, 1985, after the detection of narcotics trafficking in commercial quantities.

Earlier this year, Sasikala and an associate were arrested, leading to the seizure of drugs worth about ₹1.1 crore (roughly $0.13 million), including 1,825 LSD blot papers, cocaine, charas, and DMT. Police described it as the largest LSD recovery in Goa in recent years.

Investigators later found that the narcotics had allegedly been sourced through the dark web and supplied mainly to party circuits in major cities.

Syndicate operations and financial trail

The ED’s latest searches have exposed what officials describe as a highly organized, multi-state syndicate operating on a business-to-business supply model.

The network is believed to have distributed drugs across Goa, Himachal Pradesh, Maharashtra, Karnataka, Tamil Nadu, Odisha, and Kerala, using courier and postal services and relying on several associates for both logistics and money management.

During the raids, agencies seized cash, narcotics, including charas, documents, and electronic devices. Examination of the devices revealed that proceeds of crime were being routed through UPI platforms, bank transfers, cash transactions, and cryptocurrencies, with layered methods used to disguise the money trail.

Investigators also found evidence pointing to the large-scale distribution of substances such as MDMA, ecstasy, hash, kush, shrooms, rashol cream, cocaine, and super cream, with payments often split across multiple digital and crypto channels.

The ED said it is sharing inputs with other law enforcement agencies to enable coordinated action. Officials added that the aim is to break both the drug supply chain and the financial networks, including crypto channels, used by organized syndicates.

The investigation is ongoing, with authorities working to dismantle the interstate and international links behind the racket.

Also Read: India’s FIU Cracks Down on Crypto with Stricter KYC Rules

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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