Indian Authorities Bust Monero-Based Drugs Market

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  • Indian authorities have dismantled a Monero-based darknet drug market
  • They have seized over 1,127 LSD blots, 131 g ketamine, and roughly ₹70 lakh (≈ \$82 000) in crypto assets
  • A 35-year-old engineer identified as “Ketamelon” has been arrested in connection with the network

Indian authorities have dismantled a darknet marketplace that sold drugs in return for Monero. A 35‑year‑old mechanical engineer from Kerala, operating under the alias “Ketamelon,” was following Operation MELON, carried out by India’s Narcotics Control Bureau (NCB). Officials have uncovered evidence that he utilized Monero, a privacy‑focused cryptocurrency, to facilitate transactions with international suppliers and evade law enforcement. The bust has exposed what authorities are calling India’s most prolific darknet drug syndicate, with shipments reaching across major Indian cities.

Darknet Kingpin Captured

In a coordinated sweep, the NCB’s Kochi zonal unit executed Operation MELON, culminating in the seizure of 1,127 LSD blots and 131.66 g of ketamine from “Ketamelon’s” residence and intercepted parcels. They also confiscated crypto holdings valued at approximately ₹70 lakh ($82,000), primarily in USDT, plus Monero used in laundering operations:

The NCB noted that Monero was chosen due to its robust privacy architecture, including stealth addresses, ring signatures, and confidential transactions which obscure sender, receiver, and transfer amounts. “Monero is an untraceable cryptocurrency widely used by terrorist outfits and international drug syndicates for moving money,” one official remarked, noting the difficulty in linking transactions.

Global Supply Chain

Investigators say “Ketamelon” sourced high-volume LSD shipments—up to 10,000 blots per order—from a UK-based vendor known as “Gunga Din,” and then discreetly distributed them across cities like Delhi, Bengaluru, Chennai, Bhopal, Patna, and parts of Himachal Pradesh and Uttarakhand. The syndicate reportedly completed around 600 parcels over 14 months using fake IDs, SIM cards, and postal intercepts.

The operation began in late June when postal seizures in Kochi uncovered LSD-laden parcels, which led to surveillance and raids at Edison’s home, where the bulk of the store and crypto assets were uncovered. The NCB alleges that he operated the darknet market single-handedly, elevating him to India’s only “Level 4” vendor.

Despite Monero’s design for confidentiality, illicit users shouldn’t be too complacent: back in 2020, Chanalysis began working on methods of cracking its encryption, and we can only assume they haven’t been idle…

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