Indian Security Agencies Uncover ’Crypto Hawala’ Network Fueling Terror Funding in Kashmir – Exclusive Report
Forget traditional money trails—terror financing just went digital. Indian security agencies have flagged a sophisticated 'crypto hawala' network operating in Kashmir, revealing how decentralized finance is being weaponized for geopolitical conflict.
The Underground Pipeline
This isn't your grandfather's black-market operation. The network reportedly uses cryptocurrency to bypass international sanctions and traditional banking oversight, creating a shadow financial system that's as borderless as the tech itself. Transactions vanish into the blockchain—untraceable, instant, and devastatingly effective.
Security protocols designed to protect user privacy are now shielding illicit flows. Peer-to-peer exchanges and privacy coins turn regulatory frameworks into mere suggestions. It's financial innovation in its darkest form—cutting out intermediaries, including the law.
The New Frontline
Kashmir's conflict zone has become a testing ground for this crypto-funded warfare. The report suggests funds are converted locally to finance operations, proving that digital assets can have brutally physical consequences. It's a stark reminder: code is neutral, but its application never is.
Global intelligence communities are watching. This case study exposes the double-edged sword of financial sovereignty—the same features that attract libertarians also empower bad actors. Regulators are scrambling to patch a system that was built to resist their very presence.
One cynical finance jab? Wall Street spends billions chasing blockchain efficiency, while in conflict zones, they've already perfected it—for all the wrong reasons. The ultimate disruptive technology isn't just changing payments; it's rewriting the rules of conflict finance, and the world is just catching up.
Crypto Hawala Uses ‘Mule Accounts’ for ‘Parking’ Funds
The network uses “mule accounts” to temporarily park funds. These accounts LAYER transactions to obscure the money trail. Further, the syndicates behind the network pay a commission of 0.8 to 1.8 per cent per transaction for such account holders who are generally ordinary people, the officials added.
The syndicates lure these account holders with a promise of commissions, assuring them that their role is SAFE and is merely to park funds. They then handle the bank accounts and passwords of all mule account holders.
“This effectively ‘breaks the financial trail,’ allowing foreign money to enter the local economy as untraceable cash,” officials said.
The foreign handler sends cryptos directly to these wallets without involving a regulatory financial institution. Further, the wallet holder travels to major Indian cities like Delhi and Mumbai to meet unregulated peer-to-peer (P2P) traders to sell cryptos at negotiable prices.
According to the Jammu and Kashmir Police and central security agencies, people from countries including China, Malaysia, Myanmar and Cambodia have involved in creating private crypto accounts for local Indian people. These international handlers use a Virtual Private Network (VPN) to avoid detection and require no KYC verification.
Usage of VPNs is already suspended in the region, the police confirmed, adding that registering in crypto wallets was increasingly seen in recent times.
