NEW DELHI: The Enforcement Directorate (ED) has arrested a Dubai-based Indian national in connection with an alleged cross-border crypto-hawala network used to launder narcotics money for international drug cartels, the agency said on Thursday.
The accused, identified as Nihal VN, was produced before a Special PMLA Court in Goa, which remanded him to ED custody for seven days till July 28.
According to the ED, Nihal VN acted as a key financial conduit for drug syndicates operating across multiple continents. The agency alleged that he converted cash proceeds from narcotics sales in India into cryptocurrencies and foreign exchange.
The ED said the laundered funds were routed to suppliers in Brazil and Thailand to finance the procurement of high-grade narcotics and synthetic drugs for smuggling into India. Investigators have identified multiple crypto wallets, offshore bank accounts and domestic shell entities allegedly used in the money laundering operation.
The case stems from an FIR registered by the Anti-Narcotics Cell of Goa Police under the Narcotic Drugs and Psychotropic Substances Act, 1985. According to the ED, the FIR relates to an inter-state drug trafficking syndicate allegedly distributing narcotics on a business-to-business basis across Goa, Himachal Pradesh, Maharashtra, Karnataka, Tamil Nadu, Odisha and Kerala.
The ED had earlier conducted searches at 26 locations across Goa, Maharashtra, Kerala, Tamil Nadu, Karnataka, Odisha and Delhi, seizing about Rs 3 crore in cash, besides documents and digital devices.
The agency said the main accused in the case, Madhupan SS, was arrested on January 17 and is in judicial custody.
The ED said further investigation is underway to identify all beneficiaries and facilitators and trace assets allegedly generated through the illicit activities.