Modi Government Tightens Grip on Cryptocurrency with Forensic Investigations

Modi Government’s Crackdown on Cryptocurrency Through Forensic Investigation

Surge in Crypto-Related Cases (2020-2024)

According to the Ministry of Home Affairs, forensic cases related to cryptocurrency have increased significantly between 2020 and 2024.

Strict Measures Against Illegal Crypto Transactions

The central government is tightening its grip on illegal cryptocurrency transactions. Investigation agencies have been instructed to conduct forensic analyses of suspicious crypto transactions. They must promptly share all relevant data and inputs with law enforcement agencies to prevent such crimes.

Rise in Crypto Transactions and Financial Crimes

Forensic analysis has revealed a sharp rise in cryptocurrency transactions, particularly in cases involving money laundering, fraud, and ransomware payments. Crypto-related crimes have surged by 45%. By 2023, financial losses due to such crimes had reached $5.6 billion.

Use of a Single Crypto Investment Platform

Between 2020 and 2024, the number of forensic cases related to cryptocurrency has risen dramatically. In 2020, only 11 cases were reported for forensic analysis, whereas by 2024, this number had surged to 291. Officials noted that criminals often used the same cryptocurrency investment platform, which helped law enforcement agencies track and investigate them.

What is Cryptocurrency?

Cryptocurrency is a digital payment system where transactions are not verified by banks. It operates on a peer-to-peer system, allowing users to transfer payments directly without intermediaries. Unlike traditional currency, users do not need to carry or exchange physical money.