Gujarat High Court denies bail in a cyber fraud-linked money laundering case involving mule accounts and USDT conversion, citing economic offence gravity.
Gujarat HC Denies Bail in Cyber Fraud-Money Laundering Case
The Gujarat High Court has refused bail to an accused involved in a cyber fraud and money laundering racket using mule bank accounts and conversion of illicit proceeds into USDT (Tether). The court held that the mere fact that the offence is triable by a Judicial Magistrate First Class does not diminish its economic gravity.
The accused was charged under Sections 13(1) and 14 of the Prevention of Money Laundering Act, 2002, read with relevant IPC provisions (now BNS) for cheating and criminal conspiracy. Investigating agencies alleged that digital assets were used to layer and integrate fraud proceeds, complicating traceability. The court emphasized the transnational nature and financial impact of such crimes.
"Economic offences involving digital currencies demand strict scrutiny of bail requests,"the bench noted, highlighting risks of flight and evidence tampering. The ruling signals increased judicial attention to cryptocurrency-enabled financial crimes and may influence bail jurisprudence in similar cases across high courts.
Citations
- Prevention of Money Laundering Act, 2002, ss 13, 14
- Indian Penal Code, s 120B (now BNS s 61(2))
