Investigation alleges accused facilitated cross-border laundering of drug proceeds using cryptocurrency and hawala channels
The Enforcement Directorate (ED) has arrested a Dubai-based Indian national in connection with an alleged international money laundering network that investigators claim used cryptocurrency and hawala channels to move proceeds generated from narcotics trafficking.
The accused, identified as Nihal V.N., was arrested as part of an investigation into a suspected cross-border syndicate involved in laundering funds for international drug cartels. He was produced before a Special Prevention of Money Laundering Act (PMLA) court in Goa, which remanded him to ED custody for seven days.
According to the ED, the investigation points to an organised network that allegedly relied on virtual digital assets, informal hawala transactions and cross-border financial channels to conceal and transfer illicit funds linked to narcotics trafficking. Officials believe the operation spanned multiple countries, with Dubai serving as a key operational base for financial transactions.
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The agency said its probe uncovered evidence suggesting that cryptocurrency wallets and encrypted communication platforms were used to facilitate transactions while masking the identity of beneficiaries and the origin of the funds
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Investigators are also examining the wider financial trail and possible links to international drug syndicates
The arrest forms part of the ED’s broader crackdown on financial crimes involving virtual digital assets and cross-border money laundering. In recent months, the agency has stepped up investigations into the alleged misuse of cryptocurrencies for illegal transfers, including proceeds linked to organised crime and narcotics offences.
Officials said further investigations are underway to identify additional individuals connected to the alleged network, trace overseas assets and establish the complete flow of funds. The ED has indicated that more action may follow as it expands the investigation with assistance from other domestic and international agencies. The allegations against the accused are currently under investigation and remain subject to judicial proceedings.
