// Gujarat Police Takes Down on Crypto Network Linked to Drug Trafficking

Gujarat CID Traces Alleged Crypto Network

The investigation reportedly began after Gujarat CID’s cyber division detected suspicious cryptocurrency activity connected to an Indian IP address. Officials claim the transactions were linked to a dark web platform allegedly involved in international drug sales. According to investigators, blockchain analysis eventually led them to a crypto wallet connected to an Ahmedabad resident identified as Mohsin Molani. Police allege that further tracing exposed multiple connected wallets operating within the same network. Authorities stated that the operation involved the movement of so-called “dirty crypto,” referring to cryptocurrency allegedly connected to illegal activity. Investigators claim the funds were converted into USDT before being moved through hawala channels and converted into cash.

Monero and Privacy Coins Draw Attention

Officials involved in the case said the network made extensive use of Monero, a privacy-oriented cryptocurrency known for concealing wallet balances, transaction histories, and user identities. Police claim Monero was used to obscure transaction trails and complicate blockchain tracing efforts. Investigators also stated that several wallets in the network were designed to hide the original source of funds before assets were converted or transferred further through peer-to-peer trading channels. The case has once again placed privacy-focused cryptocurrencies under increased scrutiny, particularly as regulators in multiple countries continue pushing for stricter KYC and AML enforcement across exchanges and crypto services.

Alleged International Links Surface

During the investigation, Gujarat CID officials claimed they identified connections between the wallet network and several international entities. According to police statements, transaction trails allegedly intersected with wallets associated with Al-Kahira, a Gaza-based organization that Israeli authorities have previously linked to Hamas financing operations. Investigators also claimed that some connected wallets had links to the IRGC-QF, Russia-based crypto exchange Garantex, and the Ilan Shor network. Authorities further stated that Israel’s National Bureau for Counter Terror Financing had previously frozen certain crypto wallets in 2025 after alleging they were used to route funds to Hamas through Turkey.

Drug Trafficking and Hawala Operations

Investigators allege the network operated between India, Dubai, and the UK since 2023, using Telegram and dark web platforms to coordinate drug transactions. According to police statements, drugs were allegedly distributed in the UK while payments were collected in cryptocurrency and routed back through the network. Authorities claim the funds later returned to India through hawala and angadia channels, with some suspects allegedly using peer-to-peer crypto trading accounts to cash out digital assets. Officials also stated that several bank accounts connected to the suspects appeared in hundreds of cyber fraud complaints filed across India.

Arrests and Ongoing Investigation

Gujarat CID confirmed the arrest of nine individuals from Ahmedabad, Mumbai, and Haryana in connection with the case. Police said one key suspect remains abroad, while another individual allegedly connected to the operation is currently imprisoned in the UK. Authorities maintain that the investigation is still ongoing and may expand further as investigators continue examining alleged links to international cybercrime, drug trafficking, and terror financing networks.

Conclusion

The case highlights the growing focus on privacy coins, cross-border crypto transfers, and underground financial systems as law enforcement agencies increasingly target networks operating across both blockchain infrastructure and traditional hawala channels. While investigators have presented the operation as a major breakthrough involving more than $27 million in alleged illicit crypto flows, many of the broader international connections referenced by authorities remain allegations at this stage as the investigation continues.