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India has launched one of its most comprehensive crackdowns on cryptocurrency-related financial crimes, with the Central Bureau of Investigation (CBI) confirming multiple arrests and major seizures tied to a crypto network takedown that spans across Delhi NCR, Hyderabad, and Bengaluru.
The operation, codenamed Operation Chakra-V, targeted fraud networks connected to the HPZ cryptocurrency token scam, a case involving cross-border laundering of digital assets. The CBI said on October 4, 2025, that coordinated raids had yielded “significant digital and financial evidence,” including server data, transaction records, and crypto wallets used to move illicit funds abroad.
“These frauds were facilitated through the creation of multiple shell companies, which were used to open mule bank accounts,” the CBI said in a press release. “The proceeds collected from victims were routed through these accounts, converted into cryptocurrencies, and subsequently transferred outside India through complex financial layering and crypto conversion routes.”
According to investigators, the fraud was orchestrated between 2021 and 2023, leveraging bogus loan, job, and investment schemes to dupe thousands of unsuspecting Indians into transferring money through fintech and payment aggregator platforms that were later used for crypto laundering.
The crypto network takedown revealed the sophisticated structure behind India’s growing cyber-enabled financial crime ecosystem. Investigators found that the syndicate operated through fake business registrations, digital wallets, and unregulated exchanges, making detection and tracing extremely difficult.
The CBI confirmed that five suspects have been arrested for their direct involvement and are being presented before a competent court under charges of criminal conspiracy, impersonation, and fraud under the Information Technology Act. Officials stated that the suspects played a crucial role in executing fund transfers and coordinating with overseas handlers.
“The case pertains to an elaborate criminal conspiracy orchestrated by foreign-based masterminds in collusion with Indian nationals,” the CBI stated.
Authorities said the operation remains ongoing as they continue to identify additional actors, trace the global crypto routes, and recover more digital assets. Investigators are working closely with Interpol, Europol, and domestic intelligence agencies to expand the crypto network takedown beyond Indian borders.
The crackdown is part of India’s broader effort to enhance oversight in the crypto sector, which has seen explosive growth but also rising misuse in fraud and money laundering cases. In 2023, India introduced the Prevention of Money Laundering Act (PMLA) coverage for crypto assets, bringing exchanges, custodians, and wallet providers under compliance scrutiny.
Under the CBI’s Operation Chakra-V, launched in collaboration with Microsoft, Amazon, and Interpol, authorities have uncovered multiple global syndicates exploiting crypto channels for scams and ransomware operations.
We are using advanced digital forensics and inter-agency coordination to trace illicit crypto transactions and block the movement of funds, Anand Mishra, Deputy Inspector General, CBI Cybercrime Division, told The Economic Times. The focus is not just arrests but complete financial recovery and disruption of cross-border networks.
Despite this progress, analysts argue that the regulatory landscape must evolve faster to balance innovation and enforcement.
Criminals exploit regulatory gaps and decentralized tools, but blockchain transparency can actually be harnessed for law enforcement, Priya Singh, Senior Analyst, Chainalysis, told CoinDesk. India’s crypto network takedown shows the potential for data-driven policing when digital ledgers are analyzed effectively.
The crypto network takedown underscores India’s emergence as a major player in global crypto enforcement. With its growing digital economy and one of the largest internet user bases in the world, India faces a dual challenge: harnessing blockchain innovation while preventing its abuse for cross-border crime.
This latest CBI action signals a broader trend among developing nations adopting forensic blockchain tools to combat financial fraud. Similar initiatives are being coordinated through Interpol’s Global Cybercrime Programme and regional task forces tackling crypto-financed scams, including fake investment platforms and digital lending apps.
Crypto advocates, however, warn against overreach. They argue that the technology’s decentralized nature can enhance transparency if applied within proper frameworks.
Crypto itself isn’t the enemy, misuse is, Rohit Jain, Director of India Blockchain Forum, told Reuters. Stronger regulation and education will help citizens differentiate between legitimate blockchain projects and Ponzi-style schemes.
The crypto network takedown also aligns with global policy discussions on anti-money laundering (AML) standards and cross-border digital asset compliance, as governments push for greater accountability in decentralized finance.
As India deepens its enforcement operations, the crypto network takedown serves as a blueprint for countries battling tech-enabled financial crimes. The CBI’s multi-agency coordination, reliance on AI-driven analytics, and transparency in public communication demonstrate a maturing approach to digital crime governance.
With millions of Indians participating in crypto trading, the government’s challenge lies in balancing oversight with innovation. Experts predict more regulatory sandboxes, licensed exchanges, and data-sharing agreements to ensure crypto assets contribute positively to the formal economy.
For now, the crypto network takedown stands as a powerful statement of intent as a reminder that even in the decentralized world of blockchain, accountability is no longer optional.
