Uttarakhand cyber crime: India, US authorities work together to uncover $36mn fraud

India's Enforcement Directorate (ED) collaborated with US authorities for a search operation in the northern state of Uttarakhand on Monday (April 29),in a bidto uncover a big scam involving digital currencies worth Rs 3,000 crore ($36 million). Reports indicate that this joint effort also led to the arrest of a suspect involved in an international drug trafficking network.

The investigation began in August 2023, as per sources cited in The Economic Times. Acting on information provided by US authorities, the ED recently took action against two Indian individuals allegedly tied to a drug trafficking ring.

On April 27, Parvinder Singh and Banmeet Singh were apprehended in Haldwani, Uttarakhand, following raids conducted the day before.

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The group reportedly used dark web marketplaces and online ads to sell drugs, establishing a network of distributors and distribution cells.

Cryptocurrency payments were allegedly involved in these transactions, with funds laundered through crypto wallets.

They operated under various aliases on platforms like Silk Road 1, AlphaBay, and Hansa.

According to another report, the US Federal Bureau of Investigation (FBI) seized digital assets worth Rs 1,500 crore linked to the operation.

Crucial documents related to the case were recovered by the ED and shared with the FBI.

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In addition to arrests, the agency conducted a search at Parvinder's residence in Haldwani, seeking electronic devices like computers and smartphones believed to have been used in the alleged crimes.

(With inputs from agencies)