Coin Laundry Scandal: ₹623 Crore Siphoned Through 27 Indian Crypto Exchanges
A major investigation has shaken India’s crypto ecosystem after new evidence revealed that dozens of exchanges played a role in helping cybercriminals move illegal funds. The report, published under the international “Coin Laundry” project, shows that ₹623.63 crore was laundered through at least 27 Indian crypto exchanges between January 2024 and September 2025.
What Is the Coin Laundry Investigation?
The findings were produced by:
- The Indian Express
- International Consortium of Investigative Journalists (ICIJ)
- Indian Cyber Crime Coordination Centre (I4C)
This global project analyzed how criminals exploit cryptocurrency platforms to hide and circulate illegal money
How Criminals Laundered the Money
The investigation reveals a clear pattern of digital money laundering:
1. Illegal money is collected
Funds were stolen through:
- Online scams
- Fake investment schemes
- Hacked bank accounts
- Phishing attacks
2. Funds were converted into crypto
Criminals used Indian exchanges with weak KYC checks to convert stolen money into cryptocurrency.
3. Crypto was moved through multiple wallets
Multiple transfers made the trail harder to track.
4. Money was sent abroad or cashed out
Finally, it was withdrawn, moved overseas, or converted back into local currency.
₹623 Crore in Suspicious Transactions
According to I4C data:
- Over ₹623 crore involved in cybercrimes was moved through these crypto platforms
- The money was linked to large-scale fraud networks
- Many exchanges had poor compliance standards
- Some accounts were opened using fake or incomplete KYC details
This allowed criminals to quietly move huge sums of money without detection.
Why This Scandal Matters
The exposure of this laundering network highlights several concerns:
Weak regulations
India’s crypto market still lacks clear and strong rules.
High risk for users
Fraudulent exchanges can put investors’ funds at risk.
International criminal links
Money was moved across borders using crypto layers.
Rising cybercrime ecosystem
Cybercriminals are rapidly shifting to crypto channels to avoid banking oversight.
Impact on India’s Crypto Industry
The scandal is expected to increase pressure on regulators and exchanges.
Authorities may soon enforce:
- Stricter KYC/AML (Anti-Money Laundering) policies
- More transparent user verification
- Heavier compliance requirements
- Tighter monitoring of cross-border crypto transactions
This could significantly reshape India’s crypto environment in the coming years.
Conclusion
The Coin Laundry Scandal is a sharp warning for India’s crypto industry. While digital currencies offer innovation and financial freedom, they also create opportunities for criminal misuse. Strong oversight, secure exchange practices, and better user awareness are essential for a safer crypto future.
