A recent local media report revealed that the police in Rajasthan, India, have arrested cybercriminals involved in crypto scams. The suspects used Tether's USDT to transfer stolen funds abroad.
Indian Criminals' Link to International Gangs
Several investigations uncovered that international cyber gangs rely on local criminals in Rajasthan to convert funds from digital scams into crypto. Superintendent of Police Arshad Ali explained that the cryptocurrencies were sent to exchanges based in Dubai and France, suggesting that the masterminds behind these scams likely operate from these regions.
Operation Mode of Cyber Criminals
These criminals typically use locals' bank accounts, ATM cards, SIM cards, and cell phones to deposit illegal money into local crypto exchanges. They later transfer the cryptocurrencies, particularly USDT, to international accounts, complicating the tracing process. During a recent raid, police recovered four mobile phones and eight SIM cards associated with crypto laundering activities. Additionally, the SOG arrested 15 people on December 14 for related cybercrimes, with some providing direct bank accounts for stolen funds and others acting as currency exchangers.
Growing Use of USDT in Illegal Activities
Worldwide, digital asset scammers have persistently used USDT for illicit activities due to its stability, liquidity, and pseudo-anonymity. As a result, Tether has faced criticism for facilitating illegal operations and, in certain instances, accused of aiding in bypassing international sanctions. In May 2024, Tether partnered with Chainalysis to combat online fraud, aiming to develop a transaction monitoring platform to identify suspicious activities and trace secondary market transactions.
Despite recent criticism and challenges regarding security, Tether continues to exhibit resilience within the blockchain space.
