The Enforcement Directorate (ED) has joined the investigation into the Rs 226.54-crore cryptocurrency network unearthed by Gujarat CID Crime, sources said.
The agency is expected to probe the money laundering angle.
The ED has stepped in informally. The agency has started collecting details of digital wallets, cryptocurrency transactions and financial records seized by CID Crime. It is likely to examine whether any proceeds of crime were generated, hidden or transferred through digital assets in violation of the Prevention of Money Laundering Act (PMLA).
Its focus will be on tracking fund movement through wallets, exchanges and bank accounts, and on identifying whether any assets were created using proceeds from the suspected crypto network.
CID Crime had uncovered the network with alleged links to terror financing. Nine persons have been arrested. Six other key accused remain under detailed investigation.
Terror links
The ED will closely examine transactions involving Tether (USDT), which investigators believe was used to move funds through multiple wallets, sources said. Agencies are also probing allegations that some transactions were routed to wallets allegedly linked to Hamas, Ansar Allah (Houthis), Garantex and other sanctioned international entities.
Investigators are examining whether funds passed through foreign jurisdictions before reaching identified wallets. There is suspicion that overseas operators may have helped facilitate some transactions. If evidence of international fund movement emerges, the ED may seek assistance from foreign agencies and financial intelligence units, sources said.
Hawala trails probed
According to investigators, proceeds from narcotics trafficking, cyber fraud and other criminal activities were allegedly routed through cryptocurrency channels before being converted into USDT.
The accused allegedly used privacy-focused cryptocurrency Monero, multiple wallets, peer-to-peer (P2P) transactions and mule bank accounts to conceal the source of funds. Suspected links to hawala and angadia channels have also emerged, allegedly used to move cash generated from these transactions.
More arrests and fresh revelations are expected as the probe progresses.