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In a groundbreaking operation, Binance, the world’s largest cryptocurrency exchange, partnered with India’s Narcotics Control Bureau (NCB) to dismantle the ‘Ketamelon’ darknet drug network, announced on August 19, 2025. This high-stakes collaboration led to the arrest of Edison Babu, a Kerala-based former engineer and alleged mastermind behind India’s most sophisticated darknet drug cartel, which shipped over 600 LSD packages across cities like Bengaluru and Delhi.
Ketamelon, classified as a “Level 4” darknet vendor, used encrypted communications and India’s postal system to distribute narcotics, leveraging cryptocurrencies like Monero and USDT for payments. Binance’s Financial Intelligence Unit provided critical blockchain analytics, tracing wallet transactions and freezing $800 in USDT held in a hardware wallet, despite the network’s use of privacy coins and wallet-hopping to obscure funds.
The operation, supported by the Data Security Council of India (DSCI), underscores a new era of public-private partnerships. “Criminals may operate in the darknet, but they leave digital traces,” said Nils Andersen-Röed, Binance’s Global Head of FIU. This collaboration mapped on-chain activities, exposing Ketamelon’s financial trails and enabling swift enforcement.
India, with 30 million crypto users and $12 billion in trading volume in 2024, is tightening oversight. The NCB’s success, following Binance’s earlier aid in busting a $200,000 Ahmedabad scam, highlights blockchain’s transparency as a tool against crime. This operation sets a global precedent, boosting trust in India’s crypto ecosystem while reinforcing anti-money laundering measures under FIU-IND regulations.
As investigations continue, more arrests are expected, signaling India’s commitment to combating crypto-related crime without stifling innovation, positioning it as a leader in responsible digital asset regulation.
