Follow us on Google News
The Enforcement Directorate (ED) has intensified its fight against narcotics-linked money laundering, conducting extensive search operations across Delhi–NCR and Jaipur. Acting under the Prevention of Money Laundering Act (PMLA), 2002, the agency recovered ₹70 lakh in cash, seized multiple digital devices, financial documents and incriminating records. The investigation is connected to a high-profile narcotics case involving 82.53 kg of cocaine, seized by the Narcotics Control Bureau (NCB) last year, which exposed a multi-layered and transnational drug trafficking network.
https://the420.in/centre-for-police-technology-launched-as-common-platform-for-police-oems-and-vendors-to-drive-smart-policing/
NCB’s 2024 seizure triggered deeper financial probe
The case traces back to November 2024, when the NCB confiscated 82.53 kg of high-grade cocaine and registered Complaint No. 36/2024. Initial inquiries revealed connections extending beyond domestic handlers to international suppliers and financial intermediaries.
Relying on the NCB’s findings, the ED began mapping financial routes, bank transactions, and digital payment trails associated with the network. This led to coordinated searches on November 14, 2025, covering key locations in Delhi, Gurugram, Noida and Jaipur.
Online betting applications used to launder drug proceeds
One of the most significant findings from the ED operation was the discovery of a sophisticated online gambling–based money laundering channel. Investigators found that individuals linked to the drug syndicate were using mobile app–driven betting and gaming platforms to layer and disguise illicit earnings.
The money was routed through 110 mule bank accounts, many of which were opened using minimal documentation. Of these, 73 accounts were directly integrated with UPI services and digital wallets, enabling rapid, fragmented transactions designed to avoid detection. The ED has frozen all 110 accounts, effectively blocking further movement of suspect funds.
Dubai-based crypto wallets reveal foreign footprint
Digital evidence recovered during the raids indicates that a portion of the drug proceeds was converted into cryptocurrency and transferred to Dubai-based crypto wallets. Initial forensic analysis suggests a multi-step laundering model:
- 1. Local cash generated from drug sales,
- 2. Deposits into mule accounts and online betting platforms,
- 3. Conversion into crypto assets,
- 4. Transfer to offshore digital wallets.
Officials revealed that the network operated “with a clear international hierarchy,” involving foreign facilitators, cross-border crypto brokers and domestic handlers responsible for cash movement.
ED focuses on identifying ultimate beneficiaries
The agency is now working to trace the ultimate beneficiaries and establish the final destinations of illicit funds. Seized mobile phones, hard drives, and documents are undergoing detailed forensic analysis.
According to ED officials, “The laundering structure involved multiple layers — drug traffickers, financial agents, money mules, app operators, and overseas crypto intermediaries. More revelations are expected as digital scrutiny progresses.”
The ED is also mapping assets allegedly bought using the proceeds of crime and examining whether shell companies were used to mask ownership.
A strong message against drug–crypto laundering nexus
The latest action underscores the ED’s ongoing efforts to dismantle both narcotics supply chains and their financial backbones. Investigators believe the case highlights a growing trend where drug trafficking, digital payments, and cryptocurrency channels intersect, forming high-risk financial ecosystems.
Officials state that the next phase of the probe will focus on asset tracing, foreign cooperation, and crypto-forensics, aimed at choking the network’s financial infrastructure.
