The US Investigation Agency, FBI Collaborated with India’s AML Watchdog Enforcement Directorate in an operation to arrest “FBI wanted”, “The Singh Organisation” member in a major cryptocurrency scam.
A recent operation resulted in the arrest of Parvinder Singh, a key figure representing ‘The Singh Organisation’, from Haldwani, Uttarakhand. Parvinder, considered one of the key players in a dark web narcotics syndicate, has been remanded in ED custody till Wednesday. US officials have informed the ED that ‘The Singh Organisation’ received more than 8,000 bitcoins, worth over $533 million, as proceeds of crime.
FBI Wanted Parvinder
Parvinder, the FBI wanted criminal since 2019 when his brother Banmeet was arrested in the UK, was living with his father in Haldwani at the time of his arrest. Last year, UK authorities extradited Banmeet to the US, where he was convicted last month and sentenced to five years in prison.
The Singh brothers were allegedly involved in narcotics smuggling through ‘The Singh Organisation’ on the dark web. US authorities shared information with the ED about the organisation’s transnational operations and the money trail of over $280 million allegedly in possession of Parvinder from the ‘proceeds of crime’.
‘The Singh Organisation’ operated through dark web markets Silk Road, AlphaBay, and Hansa, according to information shared with Indian agencies. American investigators have seized several dark web communications of the accused, revealing their network and involvement of other accused.
After its search operation on May 1, the ED seized $18 million worth of bitcoins from Parvinder in Haldwani, where he is currently in ED custody. Agency sources said the accused may not be deported to the US and would rather be tried in India under the Prevention of Money Laundering Act.
“US authorities have extended their gratitude and thanked ED for taking prompt actions to execute their requests leading to Parvinder Singh’s arrest and crores in drug money being seized,” a source in the agency said. American authorities have expressed interest in “mutual capacity building” with ED for future probes and “learn from each other” in such specialized operations involving money laundering using cryptocurrencies.
During his questioning in custody, Parvinder shared details of the cryptocurrency wallets used by ‘The Singh Organisation’ and payments received in bitcoins from drug trafficking activities. Based on this information, ED conducted another search on May 1 and seized 268 bitcoins (approx $18 million) from wallets controlled by the syndicate.
“Further, after search, inquiries made on Blockchain Explorer revealed that the 4,250 bitcoins (worth over $280 million) claimed by the US authorities to be with Parvinder Singh appears to be lying on the same address as shared by the US authorities,” the source said. The Enforcement Directorate (ED) collaborated with US authorities to conduct a search operation in Uttarakhand to uncover a $400 million scam involving digital currencies, reports said. The teams from the ED and the US Federal Bureau of Investigation (FBI) also arrested a man on suspicion of involvement in an international drug trafficking ring.
ED initiated its investigation in August 2023 and in May 2024, acted on a tip by the US authorities about two Indian individuals allegedly involved in a drug trafficking operation. On April 27, the ED arrested Parvinder Singh and Banmeet Singh from Haldwani, Uttarakhand, following raids conducted a day earlier.
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How the Group Used the Dark Web to Sell Drugs
According to the report, the group allegedly used dark web vendor marketplaces and freely available online advertisements to facilitate drug sales. As per the investigators, the organisation established a network of distributors and distribution cells. The transactions reportedly involved cryptocurrency payments for drugs, followed by laundering those funds through cryptocurrency wallets. The individuals reportedly used common aliases on various dark web marketplaces, including Silk Road 1, AlphaBay, and Hansa.
The primary modus operandi involved cryptocurrency transactions, where drugs were exchanged for digital currencies. These funds were subsequently laundered through various cryptocurrency wallets, complicating the traceability of the illicit money flow.
A separate report claimed that the US FBI has already seized $180 million worth of digital currency assets linked to this operation. Furthermore, the ED has recovered important documents about the case and shared them with the FBI. The agency also carried out an operation at Parvinder’s residence in Haldwani to search for electronic devices used by him such as computers, tablets, or smartphones to carry out the alleged crimes.
