In Rajasthan, cybercriminals are using stablecoins to transfer illicit funds abroad, as revealed following the arrest of local mules.
Arrest of Mules and Fund Transfer Scheme
Local police have arrested several mules who played a critical role in converting over INR 1 crore (approximately $115,546) into Tether (USDT) before funneling it into international cybercriminal networks. These funds, sourced from digital scams like 'digital arrest' frauds, were routed through local mules into cryptocurrency and sent to exchanges based in Dubai and France.
Schemes Used and Arrests
Cybercriminals typically acquire bank accounts, ATM cards, mobile phones, and SIM cards from locals, allowing them to deposit illicit funds on local crypto exchanges. During a recent arrest, police recovered four mobile phones and eight SIM cards from the suspects, linked to their crypto laundering activities. Previously, authorities had dismantled a similar money laundering ring leveraging USDT, which led to the arrest of 15 suspects.
Countermeasures and Chainalysis Collaboration
Tether, the largest stablecoin by market capitalization, is actively working with Chainalysis to develop a transaction monitoring platform that would track secondary market activity and identify suspicious transactions. Later, in September, the stablecoin issuer partnered with blockchain network Tron and TRM Labs to establish the T3 Financial Crime Unit to monitor illegal activity involving USDT on the Tron network.
The use of stablecoins for illicit financial activities is drawing increasing attention from law enforcement and blockchain industry players aiming to develop mechanisms to combat such crimes.
