Cross-border digital terror funding exposed; dormant Kashmir modules, UP polls in focus

Indian intelligence agencies have reportedly uncovered a suspected cross-border terror-financing network allegedly involving Pakistan's Inter-Services Intelligence (ISI) and Turkey's state-run development agency, the Turkish Cooperation and Coordination Agency (TIKA). The alleged conspiracy aims to revive dormant terror networks in Jammu and Kashmir and trigger unrest in Uttar Pradesh, Delhi, Uttarakhand and Gujarat, with the upcoming Uttar Pradesh Assembly elections emerging as a particular security concern.

According to intelligence assessments, foreign handlers are allegedly using cryptocurrency, encrypted payment applications and networks of fraudulent bank accounts, commonly known as 'mule accounts', to channel funds into India while evading conventional financial monitoring systems.

Investigators suspect that traditional terror-financing methods, including hawala and physical cash transfers, are increasingly being replaced or supplemented by digital channels.

Cryptocurrencies such as TRX (Tron), private digital wallets and peer-to-peer (P2P) trading platforms are reportedly under scrutiny. Funds allegedly transferred into non-KYC wallets are converted into cash through intermediaries in major cities.

A source in security described the emerging mechanism as 'digital hawala', involving digital wallets, e-commerce networks and cryptocurrency applications to move money across borders.

Platforms and services reportedly under scrutiny include Binance's P2P facility, Trust Wallet, TokenPocket and Pakistani mobile payment services. However, their mention does not establish that these platforms or their operators are involved in illegal activities.

According to figures cited in the available information, the J&K Police Cyber Police Station, in coordination with central agencies, froze more than 8,000 suspected mule accounts during the previous year. One investigated cyber-fraud case reportedly involved transactions worth Rs 209 crore.

Broader estimates suggest that millions of suspected mule accounts operate across India, with approximately Rs 2,500 crore allegedly passing through illicit financial channels every month.

Security agencies are particularly concerned about attempts to reactivate dormant networks associated with terrorist organisations such as Hizbul Mujahideen (HM), Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM) and The Resistance Front (TRF).

Although Jammu and Kashmir remains central to the suspected funding operation, intelligence inputs reportedly indicate possible attempts to spread instability to other states.

Uttar Pradesh has emerged as a particular concern ahead of its Assembly elections, with agencies examining the possibility of attempts to exploit local sensitivities and disturb the security environment. Delhi, Uttarakhand and Gujarat have also reportedly figured in the broader assessment.

The suspected ISI–TIKA funding nexus would highlight a growing challenge for India's security establishment: the use of cryptocurrency, digital payment systems and mule-account networks to finance and potentially reactivate dormant terror infrastructure.