Main Points :
- Ketamelon was India’s most prolific darknet drug syndicate, operating at “Level 4” status, distributing LSD and ketamine nationwide.
- The Narcotics Control Bureau (NCB), aided by the Data Security Council of India (DSCI) and global partners including Binance, executed “Operation Melon” to dismantle it.
- Edison Babu, alias Ketamelon, engineered a sophisticated darknet operation, exploiting postal services, cryptocurrencies (including Monero and USDT), and TAILS OS for anonymity.
- Authorities seized over $120,000 in narcotics, around $800 worth of USDT in a hardware wallet, plus custodial wallets on Binance, and digital infrastructure.
- Binance’s Financial Intelligence Unit played a key role by tracking, analyzing, freezing illicit funds, and assisting in suspect identification.
- The case underscores that blockchain’s transparency, when leveraged with collaboration, can turn anonymity into vulnerability.
1. Background: The Rise of Ketamelon
For nearly two years leading up to June 2025, an entity known as Ketamelon emerged as India’s foremost darknet drug syndicate. Rated “Level 4” — the highest in a five-star scale that gauges both potency of narcotics and quality of service — the operation delivered LSD and ketamine across major cities such as Bangalore, Chennai, Delhi, Bhopal, Patna, and into regions like Himachal Pradesh and Uttarakhand.
Originally involved in ketamine trafficking, Ketamelon pivoted to distributing LSD in recent years, procuring supplies from darknet wholesalers, including international sources linked to illicit networks such as “Gunga Din” and “Dr. Seuss”.
2. Operation “Melon”: Intelligence and Surveillance
The Narcotics Control Bureau (NCB), informed by weeks or months of covert surveillance, launched “Operation Melon.” On June 28, 2025, authorities intercepted three postal parcels arriving at Kochi containing LSD blots. The following day, June 29, a raid on the suspect’s residence uncovered 847 additional LSD blots, 131.66 grams of ketamine, and incriminating digital evidence — including hardware wallets, TAILS operating system devices, crypto wallets, and custodial wallet credentials.
3. The Man Behind the Alias: Edison Babu
Edison Babu, a former engineer who worked in Pune, Bengaluru, and Mumbai before returning to Kerala, adopted the alias Ketamelon to conceal his activities. He led a meticulously organized darknet enterprise — placing orders, managing shipments, communicating with buyers via encrypted platforms, and orchestrating distribution like a digital e-commerce business.
To maintain operational anonymity, Babu used TAILS OS from USB sticks to leave no local trace. He layered in postal services to despatch packages—repackaging bulk imports from the Kochi Foreign Post Office into hundreds of smaller domestic parcels, sent via multiple courier services.
4. Seizures: Drugs, Wallets, Devices
The crackdown yielded substantial seizures: narcotics worth over $120,000 (in Indian rupees, ₹1 crore), including LSD blots and ketamine; high-end electronics; packaging materials; and several crypto wallets.
Digital currency assets included approximately $800 worth of USDT held in a hardware wallet, and additional custodial wallets linked to exchanges such as Binance.
5. Binance and DSCI: Crypto Intelligence at Work
While darknet traffickers believe that privacy coins and mixers afford them anonymity, blockchain’s transparency often tells another story. Binance’s Financial Intelligence Unit, led by Nils Andersen-Röed, partnered with the NCB and DSCI to trace transaction flows, identify wallets, freeze assets, and support suspect identification.
“By leveraging advanced analytics and working hand-in-hand with investigators, we helped trace and freeze those illicit funds,” Andersen-Röed said, emphasizing Binance’s ongoing commitment to supporting such operations to keep crypto ecosystems secure.
6. Key Insights for Blockchain & Crypto Practitioners
- Crypto is not the safe haven criminals presume it to be. Even privacy coins and mixers leave digital footprints that can be unraveled through cross-platform collaboration.
- Operational complexity isn’t infallible. Ketamelon’s blend of postal logistics and digital disguise ultimately could not mask activity when confronted with layered intelligence.
- Ecosystem collaboration matters. The interplay between law enforcement, cyber agencies, and compliant crypto platforms has proven vital in disrupting technologically enabled crime.
7. Recent Developments & Legal Proceedings
Following the arrest, a court in Ernakulam granted the NCB four days’ custody of Edison Babu and associate Arun Thomas for interrogation on July 8, 2025. The court had initially sought five days but secured four.
8. Closing Reflections
The Ketamelon takedown shatters the myth of crypto’s invincible anonymity. It stands as a testament to how blockchain’s inherent traceability, combined with robust inter-agency cooperation and crypto-platform transparency, can break even the most sophisticated darknet operations.
For practitioners exploring new crypto assets or blockchain applications, this case underlines a critical balance: the need for tools that preserve privacy and fungibility while ensuring enough traceability to deter abuse. As this incident demonstrates, technology’s dual-use nature demands vigilance, compliance, and collaboration.
Summary
The dismantling of “Ketamelon” marks a milestone in counter-darknet law enforcement, where traditional policework, postal surveillance, and cutting-edge crypto analytics converged. It illustrates the evolving landscape of blockchain-enabled illicit operations—and highlights how strategic partnerships between regulators and crypto firms like Binance can tip the scales toward transparency and justice.
