The project is headed by a unit of the Ministry of Internal Affairs – the Indian Cybercrime Investigation Coordination Center. With the help of the CIAT tool, law enforcement officers are going to track cryptocurrency addresses on the darknet. This should make it easier to collect transaction records, including timestamps, dates, exchanges and exchangers used, and details of services provided. The developers claim that CIAT will inform the Ministry of Internal Affairs if suspicious transactions with cryptocurrencies are detected.
The initiative was organized in response to an increase in the number of cases of cryptocurrency fraud. Police said that in September there was a case when an Indian software engineer lost more than $120,000. He met a certain woman on the Internet who advised him to invest money in cryptocurrency, but after making a deposit he was unable to withdraw the invested funds.
In July, Indian police arrested two people suspected of defrauding users of the P2P service of the Binance cryptocurrency exchange. Bank cards and documents were confiscated from the offenders, and fake bank accounts were discovered. Recently, a group of criminals were detained in the Indian city of Jamnagar, offering investors to buy fake USDT stablecoins at half the nominal value.
Many cryptocurrency exchanges and platforms also use tools to monitor illegal crypto asset transactions to improve the security of transactions. In 2020, the Paxful platform introduced Chainalysis tools for this purpose, and the Bitfinex crypto exchange introduced the Shimmer service to combat money laundering through cryptocurrencies.
Source: Bits
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