Global crypto exchange Binance has played a crucial role in supporting Ahmedabad’s Cyber Crime Branch in tracking and disrupting a sophisticated scam network that exploited digital assets to extort and launder money across South and Southeast Asia. The operation marks a growing trend in “digital arrest” scams—where fraudsters impersonate law enforcement and pressure victims into transferring funds through cryptocurrency channels.
In one Gujarat case, a 90-year-old man lost ₹1.25 crore (~$149,700) after being manipulated into believing he faced criminal charges. In another case, a young Indian jobseeker was lured to Nepal, held against his will, and forced to launder nearly ₹49 lakh (~$58,680). These events highlight how scammers are evolving tactics to exploit digital finance infrastructure and the anonymity of crypto wallets.
Binance’s FIU helps trace illicit transactions
Binance’s Financial Intelligence Unit (FIU) responded swiftly to law enforcement requests, helping trace wallet activity and flag suspicious transactions. Their inputs enabled investigators to identify laundering accounts, track asset movement, and arrest suspects. While investigations are ongoing, authorities say Binance’s support was instrumental in accelerating enforcement action and potentially preventing more victims from being defrauded.
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Officials say that every crypto transaction, while decentralised, leaves a verifiable trail on the blockchain—making it an asset for criminal investigations when platforms and authorities collaborate. The case underscores the importance of cross-border cooperation, as scam networks increasingly operate across jurisdictions, using crypto for fast, obscured fund transfers.
Crypto industry urged to adopt proactive stance
Binance reaffirmed its commitment to user safety and digital asset integrity, highlighting that blockchain, when used responsibly, is a powerful tool for financial transparency. The company said it will continue to work with Indian authorities to stop misuse of crypto infrastructure and help restore trust in digital finance.
The “digital arrest” scam trend is gaining ground across Asia, and authorities are urging citizens to be alert to such tactics. Law enforcement officials are calling for deeper partnerships with crypto platforms to safeguard users and combat financial cybercrime at scale.
