India Tightens Grip on Cryptocurrency with Forensic Investigations

Cryptocurrency: The central government is preparing to take strict action against illegal cryptocurrency transactions. Investigative agencies have been instructed to conduct forensic analysis of suspicious crypto transactions. All data and inputs should be immediately shared with relevant law enforcement agencies to prevent such cases.

Increase in Crypto Transactions

Forensic analysis has revealed a significant increase in wallet and crypto transactions since the crackdown on illegal financial activities such as money laundering, fraud, and ransomware payments. Cases of crypto-related crime have also increased by 45 per cent. By 2023, losses from crypto crime reached $5.6 billion.

Use of a Single Cryptocurrency Investment Platform

According to the Ministry of Home Affairs data, there has been a significant increase in crypto-related forensic cases between 2020 and 2024. In 2020, only 11 cases were presented for forensic analysis, while in 2024, the number of cases related to forensic investigation and analysis increased to 291.

An official stated that in some cases, it was observed that criminals used the same cryptocurrency investment platform, and the data obtained during the analysis brought them under the scrutiny of law enforcement officials.

Cryptocurrency is a digital payment system. Transactions are not verified by banks. It is a peer-to-peer system through which users can make payments to anyone at any time. Furthermore, users do not need to physically carry currency or exchange currency in a physical form. Examples of cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Ripple. Bitcoin is the most famous cryptocurrency, followed by Ethereum.