Gujarat Police Dismantles ₹226-Crore Crypto Syndicate Linked to Terrorism and Drug Trafficking
Severity: High (Score: 74.0)
Sources: Thehansindia, Deshgujarat, Dailypioneer
Published: · Updated:
Keywords: gujarat, syndicate, crore, crypto, links, terror, gandhinagar
Severity indicators: rat
Summary
Gujarat CID's Cyber Centre of Excellence has arrested nine individuals in connection with a ₹226-crore international cryptocurrency syndicate involved in terror financing and dark web narcotics trafficking. The investigation began after suspicious transactions linked to the dark web marketplace 'ARTEMISLAB.CC' were traced to a crypto wallet owned by Mohsin Sadiq Molani. Authorities uncovered links to Hamas and the Houthi group, with funds being routed through complex layering techniques involving multiple wallets and hawala channels. The syndicate allegedly used Monero for transactions exceeding ₹2 crore to obscure financial trails. Investigators identified connections to sanctioned entities and uncovered narcotics trafficking operations extending to the UK. The total transaction volume linked to the case is approximately $23.96 million. The investigation is ongoing as authorities continue to dismantle the network. Key Points: • Nine individuals arrested in a ₹226-crore cryptocurrency syndicate linked to terror financing. • Investigation revealed connections to Hamas, Houthi group, and dark web narcotics trafficking. • Authorities used blockchain analysis to trace suspicious transactions to multiple interconnected wallets.
Detailed Analysis
**Impact** Nine individuals were arrested in India, linked to an international cryptocurrency syndicate involved in terror financing, narcotics trafficking, cyber fraud, and money laundering. Financial transactions worth approximately ₹226.54 crore ($23.96 million) were traced, affecting sectors including law enforcement, financial services, and international counterterrorism efforts. The network operated across India, the UAE, the UK, and had financial ties to entities in Gaza, Yemen, Iran, Russia, and Turkey. Over 935 cyber fraud complaints involving digital scams and identity theft were connected to the accused’s bank accounts. **Technical Details** The syndicate used Dark Web marketplaces such as ARTEMISLAB.CC and Telegram channels for narcotics orders, employing privacy coins like Monero (₹2 crore worth) and stablecoins such as USDT to obscure fund origins. Blockchain analysis revealed complex layering and wallet rotation techniques to launder proceeds, with wallets linked to Hamas, Houthi militants, Iran’s IRGC-QF, Russia-based Garantex, and the Ilan Shor network. Key infrastructure included multiple crypto wallets, some previously frozen by Israel’s NBCTF and cluster-marked by the US OFAC. The kill chain involved initial illicit transactions, layering through multiple wallets, conversion to stablecoins, and cash-out via hawala and angadia channels. **Recommended Response** Deploy blockchain analytics tools to monitor suspicious cryptocurrency transactions, focusing on Monero and USDT wallets linked to known terror and narcotics entities. Harden detection capabilities against dark web marketplace activity and Telegram-based communications. Block and flag wallets associated with the identified clusters, including those previously sanctioned by NBCTF and OFAC. Monitor financial channels such as hawala and angadia for illicit fund flows and coordinate with international law enforcement for cross-border intelligence sharing.
Source articles (4)
- Gujarat: Rs 226 crore 'Dirty Crypto' network buste; Hamas, Houthi and UK drug trade links found — Thehansindia · 2026-05-19
Gandhinagar: The Cyber Centre of Excellence (CCoE) of Gujarat CID Crime has arrested nine individuals and uncovered an international cryptocurrency syndicate allegedly involved in terror financing, da… - Gandhinagar cyber raid busts terror, drug network — Dailypioneer · 2026-05-20
A major cyber operation in Gujarat has led to the exposure of an alleged international drug trafficking and terror financing network operating through the dark web and cryptocurrency channels. Authori… - Gujarat Police Busts ₹226-Crore Crypto Syndicate; 9 Held Over Terror Funding, Dark Web Links — Deshgujarat · 2026-05-19
Ahmedabad: In a major crackdown on cyber-enabled financial crimes, the Cyber Centre of Excellence (CCoE) of CID Crime, Gandhinagar, has unearthed an international cryptocurrency syndicate. This networ… - Gandhinagar cyber raid busts terror, drug network — Dailypioneer · 2026-05-20
A major cyber operation in Gujarat has led to the exposure of an alleged international drug trafficking and terror financing network operating through the dark web and cryptocurrency channels. Authori…
Timeline
- 2025-01-01 — Israeli authorities freeze crypto wallets linked to Hamas: Wallets were frozen after being identified as routing funds to Hamas through Turkey.
- 2026-05-19 — Gujarat police arrest nine individuals: Nine suspects were arrested for their involvement in a ₹226-crore crypto syndicate linked to terror financing and drug trafficking.
- 2026-05-19 — Investigation reveals extensive criminal network: Authorities uncovered a network involved in narcotics trafficking, cyber fraud, and money laundering with ties to international terror organizations.
Related entities
- India (Country)
- Iran (Country)
- Israel (Country)
- Russia (Country)
- Turkey (Country)
- United Kingdom (Country)
- United States (Country)
- Yemen (Country)
- artemislab.cc (Domain)
- Dark Web (Platform)
- Telegram (Platform)