On Congress govt nudge, Karnataka Police constitutes SIT to probe BJP-era Bitcoin scam

He further emphasized, “Before we came to power, we had promised to conduct further investigations into the Bitcoin scam. An SIT is being formed in the CID, and an order has been issued to this effect. Along with the SIT, if any technical assistance is required, we will issue orders for that as well. We will do things within the framework of the law. The probe that was hushed up earlier will be carried out again to find the truth.”

The Congress government’s decision to order further investigations into the Bitcoin scam comes amidst claims from some BJP leaders, including MP Prathap Simha, that Congress leaders were involved with certain state BJP leaders in preventing a comprehensive investigation into the Bitcoin scam issue.

In November 2020, the Central Crime Branch of the Bengaluru police discovered a suspected possession of a large quantity of Bitcoin by a hacker named Srikrishna Ramesh, also known as Sriki, following his arrest in a drug case involving the use of cryptocurrency to purchase drugs on the dark web.

The investigations into the drug case led to the filing of cases against the hacker and his high-profile associates for allegedly hacking online poker sites and cryptocurrency exchanges to acquire wealth through illegal means. However, the CCB investigations faced allegations of corruption and diversion of cryptocurrency in the possession of the hacker gang.

The hacker’s arrest in November 2020 also revealed his involvement in a July 2019 hacking of the state e-procurement cell, where Rs 11.5 crore was stolen. The CID was probing the e-procurement cell hacking case when Sriki was apprehended in 2020.

During the investigations, the CID and the ED, which also examined the e-procurement cell hacking case, were able to recover only a small portion of the Rs 11.5 crore stolen funds.

The ED, investigating the transactions of the hacker Sriki for possible money laundering, found an unexplained amount of 50,000 British pounds received by Sriki’s brother Sudarshan Ramesh, which was later transferred to a UK resident named Hanish Patel.

Since the Congress government assumed power in Karnataka in May, the state home minister G Parameshwara has repeatedly affirmed that the Bitcoin scam would be re-examined. The formation of the SIT marks a significant step towards reopening the investigation and bringing to light any omissions or commissions that may have occurred during the initial probe under the previous BJP government.