The Goa LSD Seizure investigation has expanded into an alleged international cryptocurrency money trail after the Enforcement Directorate arrested Dubai-based Indian national Nihal V.N. under the PMLA. The ED alleges Nihal handled proceeds from narcotics sales in India, converting funds into cryptocurrency and foreign currency before transferring them to suppliers in Brazil and Thailand. The wider investigation originated from a Goa Police narcotics case involving 1,825 LSD blots and other drugs. Nihal remains in ED custody as investigators examine the alleged financial network.
Goa LSD Seizure Probe Leads ED to Dubai-Based Indian in Alleged Crypto Money Trail
The Enforcement Directorate has arrested Dubai-based Indian national Nihal V.N., alleging he helped move drug money from India to suppliers in Brazil and Thailand through cryptocurrency.
The Enforcement Directorate (ED) has arrested Nihal V.N., a Dubai-based Indian national, in connection with an alleged money laundering network that investigators say used cryptocurrency to move drug proceeds from India to suppliers in Brazil and Thailand.
According to the agency, Nihal was responsible for handling the financial side of the operation. Investigators claim he collected cash generated from narcotics sales in India, converted it into cryptocurrency and foreign currency, and transferred the funds overseas to pay suppliers of synthetic drugs.
He was arrested by the ED's Goa Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. The Special PMLA Court in Goa has sent him to ED custody until July 28, giving investigators time to question him about the alleged cross-border money trail.
The case started with Goa's biggest LSD seizure in years
The investigation began after the Anti-Narcotics Cell of the Goa Police registered an FIR under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985. Based on that case, the ED later launched its own money laundering investigation against Madhupan Suresh Sasikala and others.
The police had seized narcotics worth nearly ₹1.1 crore, including 1,825 LSD blots, along with cocaine, charas and DMT. At the time, officials described it as Goa's biggest LSD seizure in recent years.
As the investigation widened, the ED searched 26 locations across Goa, Maharashtra, Kerala, Tamil Nadu, Karnataka, Odisha and Delhi on January 16. During the raids, officials recovered around ₹3 crore in cash, along with mobile phones, laptops and documents that are now being examined as evidence.
A day later, Madhupan S.S. was arrested under Section 19 of the PMLA. He remains in judicial custody. Earlier, The Crypto Times had reported that investigators were already tracking cryptocurrency transactions believed to be linked to the alleged network.
Also Read: IPAC Director Vinesh Chandel Arrested in Coal Pilferage PMLA Probe.
Investigators say cryptocurrency helped move drug money overseas
The ED believes the alleged network operated much like a business. Instead of moving money through regular banks, investigators claim the proceeds from drug sales were converted into cryptocurrency and transferred abroad.
Officials say they have traced several crypto wallets, offshore bank accounts and shell companies that were allegedly used to hide the money trail. These findings form part of the ongoing investigation and have not yet been tested in court.
The agency also claims the syndicate supplied drugs across several states, including Goa, Himachal Pradesh, Maharashtra, Karnataka, Tamil Nadu, Odisha and Kerala. The substances allegedly distributed included MDMA, ecstasy, cocaine, hash, kush, mushrooms and super cream.
According to investigators, the group relied on courier services, postal networks, encrypted messaging apps and darknet platforms to avoid detection while moving drugs and coordinating deliveries.
Part of a bigger crackdown on crypto-related crime
The arrest comes as the ED sharpens its focus on crimes involving digital assets. During the 70th ED Day event on May 1, ED Director Rahul Navin said the agency was giving greater priority to cryptocurrency fraud, cybercrime, terror financing and narcotics trafficking.
That shift has been visible in recent cases. On July 13, the ED said it had uncovered a cyber fraud network that allegedly laundered more than ₹303 crore through 216 mule accounts and shell companies. Investigators said the cryptocurrency trail in that case also led to wallets linked to Dubai.
Soon afterwards, the agency announced the seizure of around ₹3.35 crore worth of digital assets during 19 raids connected to cyber fraud cases registered in Tamil Nadu and Telangana.
The Ministry of Home Affairs recently informed Parliament that drug trafficking networks are increasingly using cryptocurrency, VPNs, and encrypted platforms such as WhatsApp, Telegram, Snapchat and Zangi to communicate and settle payments.
Meanwhile, the Narcotics Control Bureau (NCB) has formed a dedicated darknet and cryptocurrency task force. At a meeting of the Parliamentary Standing Committee on Finance on July 2, senior Reserve Bank of India (RBI) officials also raised concerns about the possible misuse of privately issued cryptocurrencies for terror financing and narcotics trafficking.
The ED says its investigation is still underway. Officials are now trying to identify other people who may have been involved, trace additional assets allegedly linked to the case, and work with overseas agencies to examine the suspected supply chain in Brazil and Thailand. As Sprouts News understands from official statements, investigators are expected to focus on cryptocurrency wallets, offshore exchange accounts, and shell companies during Nihal V.N.'s custodial interrogation.
Disclaimer: This report is based on information released by the Directorate of Enforcement and other official statements. All allegations mentioned are those of investigating agencies. Nihal V.N., Madhupan Suresh Sasikala and all others named are presumed innocent unless proven guilty in a court of law.
Editorial Note:
This article is based on publicly available FIR records, court case references, and reports published by multiple media organisations. The information is presented in the context of ongoing investigations and public interest reporting. Sprouts News does not make any judicial determination regarding the individuals mentioned and does not intend to defame any person or organisation. Any individual seeking clarification or wishing to provide an official response may contact the editorial team with verifiable documentation. The information is presented for journalistic and informational purposes.






















