US Sentences Indian National to Prison for $20M Crypto Laundering Scheme

The U.S. sentenced an Indian cryptocurrency vendor to 121 months in prison for laundering over $20 million through darknet platforms and an international hawala network.

Cryptocurrency Laundering Scheme Ends in Prison Sentence

The U.S. Department of Justice (DOJ) announced on Jan. 17 that Anurag Pramod Murarka, a 30-year-old Indian national, has been sentenced to 121 months in prison for his involvement in a cryptocurrency-based money laundering conspiracy. U.S. District Judge Gregory Van Tatenhove handed down the sentence following Murarka’s operation, which facilitated the laundering of over $20 million in cryptocurrency proceeds linked to criminal activities. Murarka, using aliases like “elonmuskwhm” and “la2nyc,” operated as an international virtual currency vendor on darknet platforms, using encrypted communication to coordinate illicit transactions.

The DOJ revealed that Murarka’s operation centered on cryptocurrency transactions to disguise the origins of funds obtained through crimes such as hacking and drug trafficking. After setting exchange rates with his clients, Murarka instructed them to send cryptocurrency to specific wallet addresses. The DOJ explained:

Once the exchange rate had been set, Murarka, located in India, directed his customers to send cryptocurrency to certain cryptocurrency addresses. Murarka then worked through a complex, pre-arranged hawala operation emanating out of India to arrange for cash to be delivered to his employees in the United States.

“Murarka’s network of employees throughout the United States and overseas would collect cash from Murarka’s hawala connections and then package the cash in a variety of ways, including between the pages of books and sealed in multiple envelopes, before mailing the cash to the customer,” the Justice Department continued. This process allowed him to leverage cryptocurrency’s anonymity while managing his hawala network for cash distribution.

After his arrest, the FBI assumed control of Murarka’s cryptocurrency laundering operation to dismantle the network further. The undercover operation recovered millions in cryptocurrency proceeds, prevented financial account takeovers, and led to the seizure of counterfeit drugs and equipment. “The defendant provided his assistance to countless other criminals as they tried to conceal their stolen money and illegal drug proceeds,” said U.S. Attorney Carlton S. Shier, IV. The DOJ highlighted that Murarka must serve at least 85% of his sentence and will remain under probation supervision for three years upon release.

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