Crypto News

Crypto Under Scrutiny: Forensic Analysis of Transactions Soars 2600% as Government Fights Cybercrime

March 3, 2025
Smart Money

Government Intensifies Tracking of Cryptocurrency Transactions Amid Surge in Forensic Analysis

Date: March 3, 2025
Time: 08:43 IST

In a significant move to combat the rising tide of cybercrime, the Indian government is ramping up its efforts to monitor cryptocurrency transactions. Data recently reviewed by News18 highlights a substantial surge in the forensic examination of digital wallets and cryptocurrency transactions, which have become essential in addressing illegal financial activities such as money laundering, fraud, and ransomware payments.

Dramatic Increase in Forensic Cases

According to statistics from the National Cyber Forensic Laboratory (NCFL), operating under the Union Home Ministry, there has been an alarming increase in crypto-related forensic cases over the past four years. The number of cases rose from just 11 in 2020 to an astonishing 291 in 2024, reflecting a remarkable growth of over 2,600 percent. The year-by-year statistics underscore a rapid escalation in the scrutiny of cryptocurrency-related activities, indicative of its rising significance in law enforcement operations.

  • 2020: 11 cases
  • 2021: 39 cases
  • 2022: 280 cases
  • 2023: 379 cases
  • 2024: 291 cases

The notable spikes in 2022 and 2023 suggest that forensic units expanded their focus in response to an increasing number of financial crimes associated with digital currencies and the shift in international regulatory landscapes.

Law Enforcement’s Growing Focus on Cryptocurrency

A senior official involved in the analysis noted that offenders often used the same cryptocurrency investment platforms, which has drawn the attention of law enforcement agencies (LEAs). During investigations, it was revealed that transactions under scrutiny were conducted on certain platforms, raising concerns when these platforms failed to cooperate, even for transactions worth crores of rupees. With repeated patterns of transactions, these platforms are becoming a focal point for further investigations.

Furthermore, ESAs have reported a total of 11,203 device forensic examinations—including mobile forensics, memory forensics, malware forensics, and more—conducted from 2019 to October 2024 to assist in criminal investigations. This multi-faceted approach seeks to identify and dismantle the technological frameworks supporting illicit activities.

Trends in Mobile and Malware Forensics

The NCFL’s findings also reveal a consistent increase in specific forensic categories over the years. Memory forensics, which involves the recovery of volatile data, grew from 80 cases in 2019 to 689 in 2024. Of these, 588 cases involved laptop and CPU analysis, underscoring the importance of recovering erased or hidden information in cybercrime investigations.

Mobile forensics has seen a staggering rise, with cases escalating from 102 in 2019 to an alarming 5,362 in 2024. With the prevalence of mobile phones for communication and financial transactions, criminals increasingly leverage these devices for their activities, making mobile forensics a critical aspect of modern law enforcement.

The surge in malware forensics is equally compelling; analytics of infected systems have burgeoned to 1,596 cases by 2024. A prominent trend within this realm is the analysis of hyperlink malware, which skyrocketed from 39 cases in 2020 to 1,196 in 2024, indicating a sophisticated evolution in phishing attacks and malicious link proliferation.

Conclusion

As cryptocurrency continues to gain traction, the Indian government recognizes the urgent need to enhance its monitoring and investigative capabilities. With the sharp rise in forensic analysis of cryptocurrencies, law enforcement agencies are now better equipped to tackle the complexities of cybercrime. This increased scrutiny reflects a broader commitment to safeguarding against the misuse of digital currencies while enhancing the integrity of India’s financial systems.