The line between cybercrime and plain old-fashioned fraud has become yet more blurred following the sentencing of international virtual currency vendor Anurag Pramod Murarka to 121 months in prison for his involvement in a classic money laundering operation that he advertised on Darknet marketplaces.
According to recently unsealed court documents, Murarka operated an international money laundering business from April 2021 until September 29, 2023. Murarka was able to operate out of India and serviced shady clients in the United States through an intricate Indian “hawala” money transferring system and the use of the US Postal Service as his “unwitting partner in transferring ill-begotten funds.” The original Hawala scam was an Indian political and financial scandal involving illicit payments allegedly sent by politicians through a network of four Hawala brokers that implicated some of the country’s leading politicians.
Murarka and co-conspirators allegedly laundered over $20 million in criminal proceeds using the same basic fraud
Murarka allegedly advertised his money laundering services on the darknet marketplace. Clients would then respond to his advertisements through encrypted messages. Once an exchange rate had been set, Murarka instructed his clients to send the illicit funds to specific cryptocurrency addresses. According to the court documents, Murarka laundered the funds through an elaborate “hawala” operation, leaving no telegraphic footprint. He allegedly arranged for funds to be sent to his employees working in the United States, who would then discreetly package the cash in between books and in sealed envelopes to be mailed to the clients through the US Postal Service.
The FBI set up an operation in collaboration with the US Postal Inspection Service (USPIS) and was able to track Murarka’s online identity. Its agents then conducted an undercover operation to shut down the money laundering operation, leading to his arrest. Through this sting operation, the FBI is also able to take legal action against Murarka’s customers, most of whom were engaged in criminal activity such as computer hacking and drug trafficking. This includes “the seizure of counterfeit drugs and drug manufacturing equipment”, as well as “millions of dollars’ worth of criminal proceeds.”
“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,” states US Attorney Carlton Shier.
“Gone are the days when cybercriminals, who enable and profit from the horrendous criminal conduct of others, can sit safely in their dens, across oceans, convinced of the limited reach of justice,” states Special Agent in Charge Michael Stansbury.
