Gujarat Police Arrests 9 in Major Operation Against Dark Web Crypto Network Linked to Terror Financing
The Cyber Centre of Excellence (CCoE) in Gandhinagar, Gujarat, has executed a significant operation resulting in the arrest of nine individuals involved in an illegal cryptocurrency network with direct ties to the dark web. This operation marks a pivotal moment in the state’s ongoing battle against cybercrime, particularly in the realm of digital currencies.
Investigators have revealed that the network was not merely engaged in financial fraud but was also allegedly facilitating drug trafficking, money laundering, and, critically, terror financing. The arrests were confirmed by Gujarat’s Deputy Chief Minister Harsh Sanghavi, who stated that the Gujarat Police successfully dismantled the illicit crypto network using advanced blockchain analysis and technical intelligence. He emphasized that this operation sends a strong message against cybercrime and anti-national activities within India.
How the Network Operated
According to information disclosed by Sanghavi and corroborated through official channels, the accused utilized cryptocurrency infrastructure to conduct their operations discreetly. The dark web served as the primary platform for executing illegal transactions, which included drug deals, complex money laundering schemes, and suspected funding channels linked to terrorist activities.
The CCoE team employed a sophisticated combination of blockchain forensics, human intelligence, and cognitive AI systems to trace wallet addresses, analyze transaction patterns, and uncover the identities behind pseudonymous accounts. This investigative framework mirrors the approach used in previous operations, such as Operation Mule Hunt, where 40 individuals were arrested in April 2026 for their involvement in a ₹622 crore cyber fraud network.
Authorities suspect that this operation may have international dimensions. The arrested individuals are currently undergoing interrogation, and investigators are working to ascertain the full extent of the network’s operations, including identifying who was defrauded, how funds were transferred across borders, and whether additional accomplices remain at large.
CCoE: Gujarat’s Frontline Against Crypto Crime
The Cyber Centre of Excellence has emerged as a critical agency in Gujarat’s fight against digital fraud. Staffed with approximately 50 technical experts, the CCoE has been instrumental in dismantling major scams related to investment fraud, digital arrest rackets, and mule account networks.
Earlier in 2025, the CCoE successfully dismantled a cross-border cybercrime network with financial links traced directly to Pakistan, where over ₹10 crore had been transferred to a Pakistani Binance USDT account. Deputy CM Sanghavi publicly disclosed the findings of that operation as well.
Why This Bust Matters
The timing of this operation is particularly significant. On May 1, India’s Enforcement Directorate officially announced that cryptocurrency fraud, terror financing, cyber-enabled crimes, and narcotics trafficking are now key priority areas for the agency. ED Director Rahul Navin highlighted this shift in enforcement focus during the 70th ED Day Celebration, indicating a robust response to the misuse of digital assets for serious criminal activities.
Gujarat has a complex history with cryptocurrency-related crime. The infamous BitConnect Ponzi scheme, orchestrated by Gujarat-native Satish Kumbhani, led to the ED seizing crypto assets worth ₹1,646 crore from linked devices in February 2025, marking the largest single-day crypto seizure by any Indian investigative agency.
In January 2026, two additional arrests were made in connection with that case. Nationally, over 24 lakh cybercrime complaints were filed on the National Cyber Crime Reporting Portal in 2025, with reported fraud losses totaling ₹22,495 crore, according to a report by the Times of India.
What distinguishes this latest CCoE operation from routine cybercrime crackdowns is the alleged nexus between cryptocurrency, the dark web, and terror financing. Should the investigation confirm these links at an international level, this case could become one of the most consequential crypto crime busts in India’s recent enforcement history.
For further insights into the evolving landscape of cryptocurrency regulation and enforcement, please refer to the original reporting source: www.cryptotimes.io.
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