Between the Lines with Mitali Mukherjee

Mitali Mukherjee’s chilling and unputdownable new book Crypto Crimes traces the murky underbelly of the crypto world and its mercurial spread across India-from the interiors of Uttar Pradesh, where crypto accounts are looted at gunpoint to quick black to white, switches for money in Bihar to the lure of drugs and parties in Karnataka and social media influencers who choose to be paid in crypto to circumvent both taxes and accountability.

Crimes range in both scale and concentration. In a chilling report, a Special Investigation Team reported that cryptocurrency is allegedly being used for transactions in narcotics, drugs, smuggling, investment of unaccounted money and illegal betting. Its latest use is to procure arms and weapons, becoming an easy conduit to fund terror activities against the Indian state. And this is only the tip of the iceberg.

With personal stories and first-person accounts, Crypto Crimes goes deep into the dark web to reveal the truth behind the crypto bubble that is red-hot, unregulated and spells trouble.

In conversation with Kartik Chauhan, Mukherjee talks about how she wrote the book and why you should read it, and more.

Q. What inspired you to write the book? Was there a particular incident that sparked the investigations?

Mitali Mukherjee: My inspiration for the book was good old journalistic curiosity. A chance conversation around a fascinating news report from the interiors of Uttar Pradesh about a petty criminal and how he had forced someone at gun-point to transfer crypto coins to him got me thinking about the world of crypto, its misuse in the world of crime and the very ‘India’ twist to how some of these criminals were operating. Where age-old felony like kidnapping, drug dealing and extortion was now being conducted with a very new-age weapon, crypto coins.

I’m neither a tech enthusiast nor an expert and in many ways, I think that helped my writing process as I approached the topic, conversations and allegations with no pre conceived notions. There were no black or white areas for me, and I wanted to see crypto for the multitude of ‘greys’ it had.

Q. The crypto business has been perceived with a certain fear and ambiguity by regulatory authorities. Would you suggest that regulation and legal acceptance are the way forward for crypto? Can regulation also limit the crimes associated with crypto?

Mitali Mukherjee: I think I would add a lack of understanding to the fear and ambiguity that plagues regulatory authorities. The biggest problem around policy for crypto is also seen as its biggest strength; it has no geographical or political borders. Different countries and their governments have responded very differently to how  they want to engage with crypto coins, the underlying technology and trading interest in crypto. In some areas, like scamming, we are beginning to see the positive effects of clear regulation. But in many others, such as its use on the dark web or ransomware, regulation is miles behind.

Q. In the book, you have profiled various crypto traders and their crimes. What were some fascinating or alarming cases that you uncovered in the research process?

Mitali Mukherjee: So many! And I don’t want to reveal all of what the book details but I think a few things that stood out for me was how there is no part of India that has not seen the misuse of crypto in different ways. It is also a ‘young’ technology so very often, the perpetrator or perpetrators of the crime are smart, young, technically skilled men and women. Another interesting aspect was how vulnerable India already is to crypto related crimes, in the form of ransomware attacks, online scams and for use on the dark web. While the understanding of what is crypto may not be quite wide (and it is a complex space), the misuse of it certainly is.

Q. From actors to influencers, there seem to be quite a few people with social capital who trade in and endorse crypto investments. How do you think these influencers and celebrities have influenced the popularity of crypto in India?

Mitali Mukherjee: Influencer culture is really one of the biggest social changes we’re witnessing. From Instagram, to YouTube to Telegram, there is a veritable storm of influencers talking about almost every aspect of our lives. Just like there’s huge appetite for stock tips, influencers have sprung up across all these social platforms to pitch for crypto coins they think will give quick and handsome gains. It is unmonitored, unchecked – and a problem. I think it is also a symbiotic relationship, in the sense that crypto appeals to the sensibilities of a younger generation and influencers have cashed in on that charm. Just like there are several red flags that go with unverified stock tips, there is a need to be extremely cautious about ‘crypto-influencers’ who are often pushing a coin for their own interests.

Q. Why do you think people should read the book?

Mitali Mukherjee: Because ultimately, it is a story about the most base emotion of greed, fear and ambition. While crypto and its underlying technology itself is fairly complex, what I was keen on doing through this book, was slicing away some of that technical complexity, both on the phenomenon and on the numbers to reveal the very human stories behind it. I think it is also an important reminder that while we may not choose to engage with a new-age technology, the threat of online scams, cyber hacking, ransomware and even kidnapping means that the technology is already engaging with us.

Q. What are some books that deepened your own understanding of crypto crimes?

Mitali Mukherjee: I tended to turn more towards financial and technical news articles that detailed the meteoric rise and fall of crypto through the years. Researching reams and reams of articles also helped me join the dots on the frequency and types of crypto related crimes. Most importantly, as a journalist, my biggest learning is through interviews. I am so grateful to the numerous experts and people who gave me their time, expertise and trust.

Q. What has been one of the most shocking episodes in the crypto world recently that our readers should read more about?

Mitali Mukherjee: The most fascinating – and scary story in recent times around crypto and greed is that Sam Bankman-Fried. Once the richest man in crypto and creator of the hugely successful crypto trading exchange FTX and the Alameda Research trading firm, Fried’s crypto empire came crashing down in November 2022, an outcome of multiple acts of financial fraud and deceit, all spearheaded by him. It also decimated the crypto market in 2023, which is now beginning to recover. There are so many fantastic pieces written around him and the fall of FTX. For those interested, the Financial Times and the New York Times did some very solid reporting on the case. Most importantly  credit for this explosive scoop goes to  a small, relatively unknown news site called CoinDesk, that has covered crypto for many years.