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Nine persons connected to a dark web cryptocurrency network which facilitates drug trafficking, money laundering, and terrorist funding across borders have been arrested in Gujarat.
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The Cyber Centre of Excellence used blockchain forensics and AI systems to trace wallet addresses and transaction patterns, leading to the arrests in Gandhinagar.
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The operation follows similar CCoE busts, including a Pakistan-linked network that transferred over ₹10 crore to a Pakistani Binance USDT account in 2025.
Gujarat Police have arrested nine individuals connected to an illegal cryptocurrency operation with dark web ties. The network allegedly performed several cybercrimes, including drug trafficking, money laundering, and terror financing across international borders.
On May 19, Deputy Chief Minister Harsh Sanghavi announced the arrests via social media. The Cyber Centre of Excellence, located in Gandhinagar, conducted the operation utilizing advanced blockchain forensics and artificial intelligence technology. Sanghavi referred to this operation as a powerful reference to deter cybercrimes and anti-national networks in India.
CCoE has proven to be one of the best law enforcement agencies for the state of Gujarat in combating fraudulent activity on the internet. Approximately 50 cryptocurrency investigation specialists are employees of the CCoE. This is the same team that successfully apprehended a transnational cybercrime network that had funding sources in Pakistan.
Dark Web Served as Primary Channel for Illegal Transactions
According to the statement from Sanghavi and the official Cyber Gujarat handle, the arrested individuals conducted their illegal operations via cryptocurrency infrastructure, which helps to hide their activities. The dark served as the major platform for different forms of illegal transactions, including drug trades and concealed money laundering trails.
Dark web-enabled financial crime is a global problem. A massive phishing attack recently targeted Canadian finance, with data from 750,000 victims being sold on the dark web, showing how cybercriminals use these hidden platforms across borders.
Also, investigators believe that the network included funding channels for terrorist activities. The CCoE team utilized several approaches to facilitate their investigations, including human intelligence, blockchain forensics, and AI systems to track the wallet addresses and transactions of the suspects. These tools helped investigators identify the people behind pseudonymous accounts.
The same investigative framework previously led to Operation Mule Hunt in April 2026. That operation resulted in the arrest of 40 individuals involved in a ₹622 crore ($6.5 million USD approximately) digital fraud network. The CCoE has built a reputation for dismantling major scams related to digital arrest rackets, investment fraud, and mule account systems.
Police believe the current operation may include cross-border dimensions. Investigators are actively interrogating the arrested persons to determine the full scope of the network, as authorities continue to work to trace how funds moved across borders and whether additional suspects remain at large.
Deputy CM Previously Exposed Pakistan-Linked Crypto Network
Early in 2025, the CCoE busted another cross-border crime network with financial trails leading directly to Pakistan. That operation discovered that over ₹10 crore (over $1 million USD approximately) was moved to a Binance USDT wallet based in Pakistan. Sanghavi, India’s Deputy CM, publicly disclosed those findings as well.
Gujarat has a complex history of crime involving cryptocurrency. One notable example is the BitConnect Ponzi scam carried out by Satish Kumbhani, a resident of Gujarat. In February 2025, the Enforcement Directorate seized ₹1,646 crore from devices associated with Bitconnect, representing the largest single-day seizure of any cryptocurrency by an Indian investigating authority.
In January 2026, the authorities arrested two people in connection with the Bitconnect case. On a national basis, over 24 lakh reports of cybercrimes reached the National Cyber Crime Reporting Portal in 2025; the total reported losses due to fraud were ₹22,495 crore, according to the Times of India.
Operation Aligns with India’s New Enforcement Priorities
The timing of this CCoE bust holds significant importance. On May 1, 2026, India’s Enforcement Directorate set new priorities, focusing on crypto fraud, terror financing, cybercrime, and narcotics trafficking.
Rahul Navin, India’s ED Director, gave the announcement at the 70th ED Celebration Day of India. The statement signaled a clear shift in India’s enforcement posture regarding digital assets misused for serious criminal activity. The Gujarat bust highlights a positive shift, showing Indian agencies can now trace dark web cryptocurrency transactions.
What sets this CCoE operation apart is its reported link between cryptocurrency, terrorist financing, and the dark web. If confirmed internationally, the case could rank among India’s most significant crypto crime busts in recent enforcement history. The arrested individuals remain in custody as investigators continue probing the full extent of the network’s operations.
