Binance Assists Ahmedabad Police in Dismantling a $200K Scam Active Across South and Southeast Asia
Main Takeaways
The so-called “digital arrest” scams continue to persist across South Asia and Southeast Asia, with criminals often attempting to use crypto to transfer and launder victims’ funds across borders.
Crypto is pseudonymous and traceable, not anonymous. Blockchain transactions leave a public record, helping law enforcement track illicit funds.
Binance supported a cybercrime case that spanned multiple jurisdictions, reflecting how solving today’s digital crimes requires cross-border cooperation.
A 90-year-old man in Gujarat, India loses ₹1.25 crore (USD $149,700) to scammers posing as law enforcement. A young jobseeker is lured to Kathmandu, Nepal with a fake job offer, locked in a hotel room, and used to launder nearly ₹49 lakh (USD 58,680). These may sound like scenes from a cybercrime thriller, but they are real cases playing out across South and Southeast Asia, driven by an emerging scam scheme whose perpetrators often use digital assets in their attempts to legalize the stolen funds.
What connects them? A cross-border network of cybercriminals, the attempt to use cryptocurrency to move funds, and crucially, the ability of law enforcement to trace those funds with help from platforms like Binance. Far from being a safe haven for criminals, crypto is becoming an asset in the fight against modern financial crime.
The Evolving “Digital Arrest” Scams
The “digital arrest” scam typically involves impersonators who pose as law enforcement officers and scare victims into transferring money under the guise of resolving fabricated legal charges.
Similar to the case of the 90-year-old man in Gujarat, a man in Ahmedabad was recently arrested for aiding a ₹22 lakh (USD $25,350) digital arrest scam targeting a senior citizen. The arrested individual facilitated the fraud by “renting out” his bank account to the primary scammer, allowing the extorted funds to be funneled through his account. This method of using “rented” bank accounts helps scammers obscure their identities and complicates efforts to trace illicit funds, highlighting the evolving tactics of digital arrest scams and the importance of coordinated action between law enforcement and crypto platforms to disrupt such crimes.
These cases are deeply transnational. Funds move fast, making speed and digital expertise essential to tracking illicit activity.
Blockchain Shines Light on Money Trail
Unlike cash, crypto doesn’t vanish as it changes hands enough times. Every blockchain transaction is timestamped, traceable, and publicly verifiable. That’s what allowed Indian authorities to start tracing the stolen USDT in both cases.
With assistance from Binance’s Financial Intelligence Unit (FIU), law enforcement identified wallet addresses, tracked transaction patterns, and flagged mule accounts. In both operations, suspects were arrested, and investigations are still ongoing.
A senior investigator at Cyber Crime Branch of Ahmedabad City Police said: “This case highlights the growing sophistication of cyber scams and the need for cross-border cooperation. With timely support from Binance’s FIU team, we were able to trace the crypto trail, identify key suspects, and move quickly on arrests. Our goal is to dismantle this criminal network at its roots and to protect not just the known victims, but also the many others who may be targeted next. We hope to continue working with partners like Binance, whose support is crucial in staying one step ahead of these evolving threats.”
It’s a reminder that crypto is not anonymous – it’s accountable. You just need the right tools, expertise, and cooperation to follow the trail.
Binance Supports Law Enforcement Across Borders
Fighting modern cybercrime demands global coordination. In both the Gujarat and Kathmandu cases, local police worked across jurisdictions, with help from private-sector partners including Binance.
Our FIU directly supports law enforcement by analyzing suspicious transactions and sharing timely intelligence. In 2024 alone, Binance responded to over 65,000 law enforcement requests globally.
In these recent “digital arrest” cases, Binance’s behind-the-scenes support enabled investigators to act swiftly – tracing funds, identifying suspects, and making timely arrests. This is a clear example of how public-private collaboration is not only effective but essential in tracking modern cybercrime. As the Ahmedabad Cyber Crime official noted, partnerships like these are critical to staying ahead of increasingly sophisticated criminal networks, and continued cooperation with platforms like Binance will be key to protecting future victims.
Final Thoughts
Scams like these are unsettling but they don’t mean that crypto is inherently unsafe. In fact, they show just the opposite: digital assets can be safer when platforms, regulators, and law enforcement work together.
Every crypto transaction leaves a breadcrumb trail. With strong partnerships and the right tools, those breadcrumbs can lead straight to justice.