Indian authorities have uncovered a major cross-border cybercrime racket in Gujarat that allegedly funnelled nearly $24 million through cryptocurrency channels to Pakistan and Dubai. The case, led by the state’s CID Crime division, marks one of India’s largest crypto-linked laundering operations to date, revealing how digital currencies are increasingly being used to obscure illegal financial activity.
The investigation reached a turning point with the arrest of Chetan Gangani, a resident of Surat, who reportedly transferred about $1.2 million to a Pakistan-linked crypto wallet via his BitGet account. Officials said Gangani converted the funds into Tether (USDT) and sent them abroad over four months, earning a 0.10% commission per transaction. His involvement, according to investigators, ties directly to a wider Gujarat-based cyber network that spanned districts including Morbi, Surendranagar, Surat, and Amreli.
Authorities explained that the group relied on “mule” bank accounts — accounts opened or used to move illicit funds on behalf of criminals. Six individuals previously detained allegedly supplied around 100 of these accounts, which were connected to at least 386 cybercrime cases nationwide. These included scams such as online task frauds, fake investments, digital arrests, and fraudulent loan apps.
Gujarat Deputy Chief Minister Harsh Sanghavi announced the breakthrough on X, confirming that the Cyber Crime Centre of Excellence tracked the money through seven layers of transfers. He disclosed that $1.2 million had been traced to a Pakistani Binance-linked USDT wallet that had cumulatively received over $3 million from Indian accounts. According to Sanghavi, this particular gang was among the key contributors to the illicit fund flow.
The discovery adds to a disturbing pattern of crypto-related frauds sweeping across Gujarat in recent months. In October, Ahmedabad Police’s Economic Offences Wing charged four Nagpur men with duping a local businessman out of $246,000 through a bogus cryptocurrency company, Doxy, which promised high returns on USDT investments. Similarly, a 51-year-old man from Gandhidham lost around $68,000 to a scam that lured him via Telegram under the guise of a trading group called Conforge Finance. Another case in Rajkot saw a medical representative lose about $38,000 to fraudsters who baited him with a fake Facebook friendship and bogus crypto profits.
Officials warn that these cases expose how cryptocurrency has become a preferred tool for both domestic and transnational crime syndicates. Digital assets like Tether allow fraudsters to move funds swiftly and anonymously across borders, complicating law enforcement efforts. The Gujarat CID has stated that the recent crackdown represents only the beginning, as they continue to trace hundreds of related accounts and wallets.
Authorities have urged the public to stay cautious, avoid unverified investment schemes on social media, and promptly report any suspicious digital activity to the National Cyber Crime Reporting Portal. With crypto scams proliferating at all levels — from large-scale laundering networks to small investor frauds — Indian investigators are racing to close the gap between financial innovation and criminal exploitation.
