Indian Crypto Vendor Sentenced to Over 10 Years for Money Laundering

Indian national Anurag Pramod Murarka has been sentenced to 121 months in prison in the US for running a global money laundering operation that funneled more than $20 million in criminal proceeds.

U.S. District Judge Gregory Van Tatenhove handed down the sentence last Wednesday after Murarka was convicted of facilitating the laundering of criminal proceeds through a sophisticated operation involving crypto and a hawala system.

Operating under aliases such as “elonmuskwhm” and “la2nyc,” Murarka advertised money laundering services on darknet marketplaces from April 2021 to September 2023, according to a statement Released Friday by the U.S. Attorney’s Office for the Eastern District of Kentucky.

Using encrypted communications, Murarka coordinated with customers and instructed them to send crypto to specific wallets.

The money was then converted into cash through a Hawala network from India.

Murarka’s U.S.-based employees packaged the money and delivered it to customers in unconventional ways, including hiding it in books and envelopes, according to the statement.

The investigation, led by the FBI and the US Postal Inspection Service (USPIS), revealed how Murarka knowingly worked with clients involved in illegal activities such as drug trafficking and computer hacking.

After his arrest, authorities seized millions in illegal funds and took control of his online accounts. They used it to prevent $1.4 million in financial fraud and the seizure of counterfeit drugs and equipment.

“This case highlights the global scale of cybercrime, as well as the demand for dedication and cooperation in combating money laundering – a devastating second layer of criminal behavior,” said Carlton S. Shier, IV, U.S. Attorney for the Eastern District of Kentucky.

Under federal law, Murarka must serve at least 85% of his sentence and will be on three years of supervised probation after his release.

Crypto scams dominated investment fraud losses in 2023

In 2023, investment fraud in the US skyrocketed to $4.57 billion, with crypto fraud accounting for 87% of the total, according to Federal Bureau of Investigation (FBI) findings.

Losses from crypto fraud reached $3.96 billion, marking an 18-fold increase since 2018.

Millennials and Generation X emerged as the most targeted audiences, with average losses per individual reaching $115,499.

Authorities warned that the decentralized nature of crypto makes it a prime target for scams and advised the public to exercise caution and do thorough research before investing.