“This case demonstrates the evolving methods of financial crime,” a police spokesperson said. “Criminals are turning to crypto laundering because it can move money quickly and across borders, but with new forensic tools we are catching up.”

The arrests follow a string of similar cases across India involving fraudulent investment schemes and online scams. Victims are often persuaded to transfer money through fake trading platforms before the funds vanish into complex webs of wallets and exchanges.

India’s Enforcement Directorate has pledged to tighten cooperation with global agencies to track illicit flows. The Reserve Bank of India has also renewed calls for stricter rules on stablecoins, which it argues are increasingly used in crypto laundering operations.

Experts point out that while crypto can disguise funds in the short term, the transparency of blockchain transactions often works against criminals in the long run. Forensic firms specialising in blockchain analytics now play a major role in helping law enforcement trace suspicious flows.

The arrests send a message that India is no longer prepared to ignore the role of crypto in organised crime. Exchanges in the country are facing greater scrutiny, and new legislation is expected later this year to formalise oversight of digital assets.

For investors, the crackdown is a reminder that regulation is tightening worldwide. While the vast majority of crypto activity is legitimate, the association with crypto laundering continues to draw political attention.

As India prepares its next wave of rules, the case in Mumbai shows the global challenges of regulating a borderless technology. For now, it stands as a clear signal that law enforcement will pursue cases of crypto laundering with increasing vigour.