https://decrypt.co/301795/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 U.S. for operating a global money laundering operation that funneled over $20 million in criminal proceeds.

U.S. District Judge Gregory Van Tatenhove delivered 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 like “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 clients, directing them to send crypto to specific wallets.

The funds were then converted into cash through a hawala network originating in India.

Murarka’s U.S.-based employees would package the cash and deliver it to clients through unconventional methods, including hiding it in books and envelopes, as per the statement.

International Crypto Vendor Sentenced for Money Laundering Conspiracy-During the conspiracy, more than $20 million in criminal proceeds were illegally laundered

The investigation was conducted by @FBILouisville and @USPIS_HQ https://t.co/Xf9zru5QXw pic.twitter.com/gh5cj1LCrQ

— U.S. Attorney EDKY (@USAO_EDKY) January 17, 2025

The investigation, led by the FBI and the U.S. 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, using them to prevent $1.4 million in financial fraud and confiscating counterfeit drugs and equipment.

“This case highlights the global scope of cybercrime, as well as the demand for diligence and collaboration in fighting money laundering – a devastating second layer of criminal conduct,” 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 face three years of supervised probation upon release.

In 2023, investment fraud in the U.S. skyrocketed to $4.57 billion, with crypto schemes accounting for 87% of the total, as per the Federal Bureau of Investigation's (FBI) findings.

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

Millennials and Gen X emerged as the most targeted demographics, with average losses per individual climbing to $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 conduct thorough research before investing.