Gandhinagar: The Enforcement Directorate (ED) has entered the investigation into the ₹226.54-crore cryptocurrency network unearthed by Gujarat CID Crime and is likely to probe the case for potential violations under the Prevention of Money Laundering Act (PMLA).

Reports indicate that the ED has begun gathering information related to digital wallets, cryptocurrency transactions, and financial documents seized during the CID Crime inquiry. The agency is expected to examine whether criminal proceeds were generated, layered, or moved through virtual digital assets.

As part of its probe, the ED will track the movement of funds across crypto wallets, exchanges, and bank accounts, while also identifying assets allegedly acquired using illicit money linked to the network.

CID Crime had earlier busted the suspected cryptocurrency network, which investigators believe may have terror-financing links. Nine persons have been arrested so far, while six other suspects remain under investigation.

Officials are scrutinising transactions involving Tether (USDT), suspected to have been used to move funds through multiple wallets. Authorities are also probing allegations that some transactions were routed to wallets allegedly linked to Hamas, Ansar Allah (Houthis), Garantex, and other sanctioned entities.

Investigators are examining whether funds passed through foreign jurisdictions before reaching the identified wallets. If evidence of cross-border transactions emerges, the ED may seek assistance from foreign enforcement agencies and financial intelligence units.

The probe suggests that proceeds from narcotics trafficking, cyber fraud, and other crimes were routed through cryptocurrency networks before being converted into USDT. The accused allegedly used privacy-focused cryptocurrency Monero, multiple wallets, peer-to-peer (P2P) transfers, and mule bank accounts to conceal the origin of funds.

Officials expect further arrests and fresh revelations as the investigation progresses. DeshGujarat