The FBI secretly funded and directly engaged with drug traffickers and hackers, including members of the notorious Scattered Spider cybercrime group, as part of an undercover crypto money laundering sting, according to new details reported Tuesday by 404 Media, citing court documents.
Federal authorities ran the Elon Musk-themed money laundering scheme undercover for nearly a year after arresting its original operator, Indian national Anurag Pramod Murarka, 30, who was sentenced in January to 10 years in prison on charges of conspiracy to commit money laundering.
During the year-long undercover operation, federal agents prevented an additional $1.4 million from being laundered by posing as Murarka, court documents show.
Indian Crypto Vendor Sentenced to Over 10 Years for Money Laundering
Indian national Anurag Pramod Murarka has been sentenced to 121 months in prison in the U.S. for operating a global money laundering operation that funneled over $20 million in criminal proceeds. U.S. District Judge Gregory Van Tatenhove delivered the sentence last Wednesday after Murarka was convicted of facilitating the laundering of criminal proceeds through a sophisticated operation involving crypto and a hawala system. Operating under aliases like “elonmuskwhm” and “la2nyc,” Murarka adverti...
Murarka previously used the aliases “elonmuskwhm” and “la2nyc” to receive crypto from drug traffickers and hackers, converting digital assets into cash through a complex hawala network—an informal money transfer system illegal in multiple countries.
Murarka advertised money laundering services on darknet marketplaces from April 2021 to September 2023 and used encrypted communications with clients, directing them to send crypto to specific wallets.
Criminal proceeds were hidden in envelopes and children's books as part of the scheme, Decrypt previously reported.
In January, the U.S. Department of Justice said over $20 million was laundered through the operation.
After the FBI began investigating Murarka, authorities lured him into traveling to the U.S. by approving his visa application.
FBI Says 'Operation Level Up' Stopped Crypto Fraud Victims From Losing $285 Million
The FBI is taking the fight against crypto fraud to its attackers and says it has already saved more than 4,300 victims over $285 million. The government initiative, dubbed Operation Level Up, is attempting to lessen the estimated $3.9 billion in losses from investment fraud related to cryptocurrency in 2023 alone. The FBI Internet Crime Complaint Center, known as IC3, has reported around 3,200 cryptocurrency investment fraud complaints every month. These are known by agencies by the derogatory...
Upon his arrival, he was arrested, allowing the FBI to take over the illicit enterprise, which was operated via a "shed-sized" post office in Kentucky, per the report.
Under FBI management, the undercover operation continued to process crypto payments and track cash deliveries to Murarka’s U.S.-based associates.
Murarka is required to serve a minimum of 85% of his prison term, followed by three years of supervised release, as dictated by U.S. federal law.
Edited by Sebastian Sinclair
