Indian Scammers Exploit USDT to Launder Millions: Shocking New Details Revealed!

In the Indian state of Rajasthan, cybercriminals are channeling their ill-gotten gains, often through cryptocurrencies such as Tether (USDT), to overseas fraudsters.

Based on reports from local news outlets, Rajasthan police have apprehended multiple individuals who acted as money transfer agents in transforming around 10 million Indian Rupees (around $115,546 USD) into Tether (USDT), and then directing it towards international criminal networks operating on the internet.

The Superintendent of Police, Arshad Ali, disclosed that ill-gotten funds, obtained from digital frauds like “digital arrest” schemes, were funneled through local intermediaries (mules) into cryptocurrencies and subsequently transferred to exchanges located in Dubai and France. He hypothesized that the main architects of these scams might be residing in those countries.

These criminal hackers often get hold of bank accounts, ATM cards, cell phones, and SIM cards from residents, enabling them to transfer illegitimate funds into local cryptocurrency exchanges. In a recent apprehension, the authorities found four mobile devices and eight SIM cards belonging to the suspects, which were traced back to their crypto money laundering operations.

Earlier, a criminal network involved in money laundering, utilizing USDT, was dismantled by the authorities. This action resulted in the apprehension of fifteen individuals, as detailed in the subsequent report.

USDT, the top stablecoin by market value, is often favored by scammers because of its stability, ease of trading, and perceived anonymity. Consequently, Tether has faced criticism for allowing illicit activities and in certain instances, aiding in the bypassing of international sanctions.

In May 2024, Tether announced they were collaborating with Chainalysis to create a system for monitoring transactions, aiming to keep tabs on secondary market activities and flag any potentially suspicious ones.

In the month of September, I teamed up with blockchain network Tron and TRM Labs to set up the T3 Financial Crime Unit. This unit’s purpose is to keep a close eye on any illicit activity related to my stablecoin (USDT) within the Tron network.

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2025-01-20 13:15