HYDERABAD: Cyber fraudsters often use digital currency to launder money obtained from criminal activities. Many, including police officials, believe that once money was converted into cryptocurrency, it became untraceable, leading to a loss of hope in recovering stolen funds. However, a platform called Hornet claims to monitor transactions even on the dark web. Using this technology, Cyberabad police recently arrested a suspect involved in a cyber fraud case.
A police official explained that once fiat currency is converted into cryptocurrency, it is laundered through multiple channels, making it extremely difficult to track.
Hornet founder & CEO Souvik Haldar told TNIE that the firm has partnered with Cyberabad commissionerate to investigate cryptocurrency-related crimes. “Even after fiat currency is converted into cryptocurrency, there is always an end-user. Our job is to identify the individuals behind these transactions using technology. While it is challenging, we have traced and resolved some cases,” he said.
Haldar added that Hornet monitors the dark web to generate actionable intelligence, which aids law enforcement agencies in investigations. “There are pseudo-anonymous links to real-world identities. We can extract scientific reports from the blockchain, which helps track culprits,” he explained.
Another Hornet representative revealed that the Cyberabad commissionerate procured this technology in September 2024 to trace cryptocurrency-related cases. “So far, two refund orders have been obtained from the court, 32 cases are in progress and one culprit has been arrested. A total of $52,306.2 has been frozen in international crypto exchanges, while $22,800.9 has been initiated for refund. Additionally, 166 wallets have been identified on exchanges that have KYC verification,” the representative told TNIE.
Hornet has also partnered with the ED, Kolkata Police and other state police forces to assist in crypto crime investigations.
It is worth noting that cybercriminals typically steal money from victims by transferring it through multiple bank accounts before converting it into digital currencies like cryptocurrency, making it difficult to trace. Once the money is converted, even the police may struggle to track the transactions.This is why cyber police always advise victims to report incidents within the golden hour (the first hour after the fraud) to increase the chances of recovering stolen funds before they are transferred into cryptocurrency.