TLDR:
- FBI secretly ran a major crypto money laundering operation for nearly a year after arresting its original operator
- Indian national Anurag Pramod Murarka operated “ElonmuskWHM” service, laundering $24 million in cryptocurrency
- The operation connected to drug traffickers, hackers, and the notorious Scattered Spider cybercrime group
- FBI lured Murarka to the US by approving his visa application before arresting him
- Murarka was sentenced to 121 months in prison for money laundering
The FBI secretly took over and ran one of the darknet’s largest cryptocurrency money laundering services for nearly a year after arresting its creator.
The operation, which used the moniker “ElonmuskWHM,” had processed millions in criminal proceeds before federal authorities stepped in and continued the scheme to catch more criminals.
The original mastermind behind the operation, 30-year-old Indian national Anurag Pramod Murarka, was sentenced to 121 months in prison this January after being convicted of conspiracy to commit money laundering.
Court documents reveal that Murarka had built an operation that laundered more than $24 million in cryptocurrency over just two years.
How the Operation Worked
ElonmuskWHM offered a simple but crucial service to the criminal underworld: converting cryptocurrency into untraceable cash sent through the mail. The operation advertised on various darknet forums starting around October 2020, charging a 20% fee for “dirty” funds sourced from criminal activity.
Customers would send cryptocurrency to ElonmuskWHM, who would then mail cash hidden inside children’s books and multiple sealed envelopes. This service allowed criminals to bypass legitimate banking systems that require identification and report suspicious transactions to authorities.
By January 2021, ElonmuskWHM claimed to have processed 450 sales and eventually boasted about moving millions across multiple continents. The operation could allegedly move up to $1 million weekly and $100,000 overnight within the US if needed.
The FBI Investigation
Federal investigators discovered ElonmuskWHM’s advertisements on various darknet sites in April 2021. In August, the FBI partnered with the United States Postal Inspection Service (USPIS) to investigate the operation, setting up a PO Box in Waddy, Kentucky to receive cash mailings.
Through numerous undercover purchases and blockchain analysis, investigators found that nearly $90 million worth of cryptocurrency had moved through ElonmuskWHM’s network. Authorities also traced package shipments to a man in his early 20s in Westchester County, New York, who became a confidential informant after his arrest.
This informant, referred to as “Eric” in court documents, revealed that he received between $100,000 to $300,000 about three times weekly. Much of this money came from legitimate business owners wanting to send money back to India through an underground banking system known as hawala.
The Takeover
The FBI ultimately identified ElonmuskWHM as Murarka through search warrants with Apple, Binance, and Uber, along with a review of US visa applications. Murarka had a one-third ownership stake in a land surveying company in India.
In a clever trap, US authorities approved Murarka’s previously denied visa application, knowing they would arrest him upon arrival. After his arrest on September 30, 2023, the FBI made the decision to continue running the operation themselves.
For approximately 11 months, FBI agents posed as ElonmuskWHM, continuing to process transactions while investigating the operation’s criminal customers. Court records indicate that during this undercover period, the FBI prevented an additional $1.4 million from being laundered.
Criminal Connections
Authorities linked ElonmuskWHM’s services to drug trafficking prosecutions in Miami, a knifepoint robbery in San Francisco, and numerous hacking cases worth millions in criminal proceeds. One such case involved Remington “remi” Ogletree, allegedly connected to the Scattered Spider hacking collective.
Scattered Spider, designated by the FBI as a top-three cyber threat behind only China and Russia, is known for aggressive tactics and social engineering skills. Two days after the FBI searched Ogletree’s residence in February 2024, he contacted the undercover money laundering service, unaware it was operated by the FBI.
The FBI then provided $75,000 in cash to Ogletree in exchange for cryptocurrency, with Ogletree only being arrested nearly a year later in November 2024. Court records indicate Ogletree had previously moved around $80,000 through the service in 2023.
Murarka’s underground operation incorporated the centuries-old hawala banking system with modern cryptocurrency, creating a hybrid that was particularly useful for criminals. While many hawala customers are not criminals, ElonmuskWHM’s business intersected with that system to facilitate criminal cash flow.
The case highlights the complex global nature of cybercrime and the lengths to which federal authorities will go to combat money laundering operations. United States Attorney Carlton S. Shier IV emphasized the case demonstrates “the global scope of cybercrime, as well as the demand for diligence and collaboration in fighting money laundering.”
