The rapid proliferation of digital assets — encompassing cryptocurrencies, non-fungible tokens (NFTs), and related virtual instruments — has generated a parallel ecosystem of sophisticated financial crime that challenges the structural architecture of India's legal order. This article provides a critical, multidimensional analysis of the intersection between digital assets and criminal liability in India, with a specific focus on cryptocurrency-enabled cyber offences. Drawing on statutory interpretation, judicial precedent, and comparative regulatory analysis, the article examines the definitional evolution of 'virtual digital assets' under the Income Tax Act, 1961; the extension of the Prevention of Money Laundering Act, 2002 (PMLA) to virtual asset service providers in March 2023; the application of the Information Technology Act, 2000; the transitional criminal jurisprudence introduced by the Bharatiya Nyaya Sanhita, 2023 (BNS); and the Enforcement Directorate's growing arsenal of investigative tools. The article further analyses landmark case law including Internet and Mobile Association of India v. Reserve Bank of India (2020), and the recent WazirX security breach (2024) and its regulatory aftermath. Finally, it critically evaluates te persistent lacunae in India's legal framework — including the absence of dedicated cryptocurrency legislation, low conviction rates, jurisdictional challenges in cross-border offences, and the threat posed by decentralised finance (DeFi) protocols — and proposes a comprehensive reformative agenda rooted in the principles of legal certainty, technological neutrality, and international cooperation.