Cryptocurrency Hawala Racket Disguised as Flower Export Uncovered

The Income Tax Investigation Wing has uncovered a major cryptocurrency-based hawala racket operated by two individuals from Malappuram. Under the guise of a flower export business, they allegedly transferred around Rs 330 crore using crypto channels. The IT Department plans to refer the case to the Enforcement Directorate.

A significant hawala racket involving cryptocurrency has been uncovered by the Income Tax Investigation Wing, with the operation allegedly managed by two individuals from Malappuram under the pretense of a flower export firm, according to officials.

The IT Investigation Wing has concentrated searches in Malappuram and Kozhikode districts over the past three days, indicating a robust investigative effort against the flower exporting firm implicated in using cryptocurrency for illicit transactions.

Preliminary investigations suggest the duo received payments from Indonesia through cryptocurrency, bypassing traditional banking systems. Multiple crypto wallets were allegedly created under different individuals' names, and about Rs 330 crore is estimated to have been transacted. The case is likely to be referred to the Enforcement Directorate for further legal action.

(With inputs from agencies.)