Gujarat High Court denies anticipatory bail to accused involved in a cyber fraud scheme using mule accounts and USDT conversions, stressing severity of economic offences.
Anticipatory Bail Denied in Cyber Fraud and Money Laundering Case
The Gujarat High Court has denied anticipatory bail to an accused implicated in a cross-border cyber fraud and money laundering racket involving layered digital transactions and conversion of illicit funds into USDT (Tether), a stablecoin. The prosecution alleges the accused operated multiple 'mule accounts' to facilitate the laundering of approximately ₹28 crore.
The court rejected the argument that the offence being triable by a Judicial Magistrate First Class (JMFC) warrants bail release, observing that
'the mere classification of the offence does not diminish the gravity of economic crimes under PMLA and IT Act'. It noted the role of cryptocurrency in obscuring fund trails and increasing enforcement complexity.
The ruling reaffirms the stringent bail standards under PMLA, particularly when financial systems are exploited. Lawyers handling similar cases must emphasize the nexus between technology-enabled fraud and laundering patterns when advising clients or presenting before enforcement agencies.
