India’s Central Bank Exposes Bank Officials in Crypto-Laundering Scheme
India's Central Bureau of Investigation (CBI) has arrested two bank officials for allegedly aiding cybercriminals in laundering illicit funds through cryptocurrency. The officials reportedly facilitated the creation of mule accounts to obscure the origin of stolen money, which was then converted into digital assets and moved offshore.
The operation involved moving funds in small denominations across thousands of accounts to evade detection. The CBI emphasized the complicity of the bankers, who provided tips to criminals to avoid scrutiny. Both officials have been dismissed, and their institutions notified.
This case highlights the growing intersection of traditional banking and crypto-enabled fraud. Authorities are intensifying scrutiny of such schemes, particularly those exploiting jurisdictional gaps in digital asset flows.
