The government’s net of cryptocurrency wallets and transactions is becoming more stringent. A staggering 2600% growth in forensic analysis of cryptocurrency cases has been witnessed over the last four years, according to exclusive data analyzed by News18. The steep rise indicates a growing focus on monitoring illicit financial flows related to digital currencies.
The National Cyber Forensic Laboratory, operating under the Union Home Ministry, logged just 11 cases in 2020. The number crossed 291 cases by 2024. Cryptocurrencies were a niche class of investments previously but are a priority for law enforcement agencies now. Their role in money laundering, fraud, and ransomware payments has put them under greater scrutiny.
Year after year, the numbers tell the story. In 2020, the forensic analysis of crypto cases barely registered. In 2021, there were 39 reported cases. And then the floodgates opened—280 cases in 2022, 379 in 2023, and 291 in 2024. This exponential growth suggests a growing awareness of the danger presented by digital currencies in the cybercrime landscape.
A senior official revealed that some crypto platforms became a public denominator for illicit activities. “During investigation it was detected that crypto transactions which were under the scanner were performed on a certain platform. While LEAs got in touch with the platform, they did not provide information even when the transaction was worth crores, raising doubts on such platforms. Because multiple transactions were done in a similar pattern, these platforms are also being scanned” the official informed News18. The refusal generated suspicions about the platforms themselves, which are now under investigation.
The government’s strategy is self-evident. With its anti-cryptocurrency crime crackdown, the law enforcement agencies are presenting a more robust case against criminal gangs. Forensic analysis of transactions and wallets is proving invaluable in revealing patterns, identifying suspects, and sealing vital evidence.
The increase in cases related to cryptocurrencies also coincides with worldwide trends. International policy shifts and an increase in cybercrime activity have compelled governments everywhere to respond. India is not an exception, and its forensic divisions are gearing up to stay one step ahead of these constantly changing threats.
Cryptocurrencies are no longer operating in the shadows. The government’s improved forensic capabilities ring a warning bell to perpetrators of digital currency use for illegal activities. With more cases being under investigation and platforms being put on the question, the times of unregulated crypto transactions might be nearing their end.
Source: News18
