In one of the largest cyber-financial crackdowns in Jammu and Kashmir, security and enforcement agencies have busted a massive hawala network operating through thousands of “mule accounts” across the Union Territory. Officials confirmed that over 8,000 such suspicious bank accounts have been frozen, believed to have laundered crores of rupees in illicit funds, some of which were routed to support terror-linked and anti-national activities.  

According to investigators, these mule accounts were integral to an elaborate financial chain that converted stolen or illegally acquired money into untraceable digital assets, including cryptocurrency. Cyber experts describe mule accounts as the “most dangerous” part of the cybercrime pipeline, enabling criminals to conceal the origins of dirty money with sophisticated digital transfers. 

Authorities have now zeroed in on a growing network of local intermediaries — known as “mulers” — who allegedly operated as facilitators between scam syndicates and beneficiaries. The racket reportedly has cross-border linkages and may have been used to fund separatist elements and other unlawful outfit’s. 

A coordinated effort by central security agencies, J&K Police, financial intelligence units, and cybercrime cells is underway to dismantle the wider network. Banks and financial institutions have been directed to conduct enhanced verification and real-time monitoring to prevent the opening of new mule accounts.  

Officials said the drive is part of a larger national effort to counter digital money laundering and terror financing mechanisms that exploit gaps in the cyber and banking ecosystem. More arrests and account freezes are expected as the investigation expands in this case.