Bitcoin helped to smuggle whopping 100,000 dollars worth of LSD from USA to India. This report says drugs came to India using virtual currency ship postage stamp style through courier services.
LSD is totally colorless and oderless and is harder to detect as well. Our sources told us that these drugs were purchased using bitcoin which were sent from India to USA. Since bitcoin transfer does not make use of any bank, nobody even came to know about the transferred money. The gang has been smuggling and supplying such drugs to many people including top bollywood celebrities.
The inspector working on this case suggested there could be many more similar people operating in India illegally and importing drugs using Bitcoin from all over the world.
On the flip side, bitcoins allows people to transfer money from one to another without informing the government or bank institution about it which is one way of avoiding tax. Some people are even able to buy bitcoins without ID proof which can hurt the crypto currency in long run.
It is still not clear if bitcoin is legal in India or not. Many say that since nothing has been explicitly about legality of bitcoin, it can be considered legal. More and more countries including Japan have made Bitcoin legal in order to prevent such things from happening.