Bitcoin scam: Karnataka to resume probe, likely to hand over case to CID

Congress government in Karnataka is all set to resume investigation into multi-crore Bitcoin scam involving international hacker Srikrishna alias Sriki, which h created a political uproar at national level in 2021 and 2022. alleged scam involves senior police officers and several politicians. Siddaramaiah-led state government is likely to hand over case to CID. Currently, prime accussed in Bitcoin scam, Sriki, has been eving police, but a search operation to nab him is underway.

Speaking to Republic on matter, Home Minister Dr G Parameshwara said that "We will thoroughly re-investigate bitcoin scam. We will soon decide wher case should be handed over to CID or t. CID is currently effective, and refore y will go ahe with investigations, and or ncies will assist m."

However, a contrictory statement was me by Rural Development and Panchayat Raj Minister Priyank Kharge, who said that handing over probe into Bitcoin scam to CID meant "giving keys of house to thief".

Meanwhile, Bengaluru Police Commissioner B Dayanand has written a letter and requested DG-IGP Alok Mohan to appoint a special investigation team to look into issue. Home Minister Parameshwara also said, "I have held two meetings with police officers in connection with Bitcoin scam. To whom has money been transferred? Crores of rupees have been illegally collected. A detailed investigation needs to be conducted into how money was transferred. We will throw light on entire scam."

previous CID inquiry

CID probe h earlier revealed that evidence in connection with bitcoin transfer h been destroyed. probe suggested that re was need to furr conduct an analysis by forensic experts to investigate wher digital evidence was destroyed or t. Later, a report was submitted by CID officials that stated that technical details would be available only after scrutiny by FSL experts. However, re have been allegations that case was closed without giving it to forensic experts because of involvement of some police officers and politicians.

Hacker Sriki h swindled government portals of Rs 11.55 crore

In 2019, Sriki hacked state government's e-procurement website and succeeded in stealing Rs 11.5 crore, according to a chargesheet filed by police in 2021. CID officials, who investigated case, blocked 14 bank accounts of Sriki and NGOs involved in irregularities and recovered Rs 1.44 crore from m. It was confiscated. He hacked government portals and transferred money to bank accounts of NGOs Udaygram Vikash Sanstha in Nagpur and Nimmi Enterprises in Uttar Presh. Investigations later revealed that Sriki h received money from NGOs.

How did Bitcoin scam come to light?

On vember 18, 2020, Central Crime Branch (CCB) police arrested hacker Sriki in connection with Sandalwood drugs case. It came to light that Sriki h purchased drugs through international dealers on a dark website by using bitcoins. During interrogation, Sriki revealed that several websites h been hacked. CCB officials h said that y h seized 31 bitcoins from Sriki's crypto wallet. However, n commissioner, Kamal Pant, said that coins were confiscated and that it was alleged that bitcoins in Sriki's wallet were transferred to different wallets and that evidence was destroyed.

"Let bitcoin scam be investigated from all angles. Those who have done wrong should be punished. Let m start an investigation inste of threatening to investigate," BJP leer and former Home Minister Araga Jnanendra told Republic.

Sriki's link to Morgan case

26-year-old hacker was also found involved in case of New York-based couple Lichtenstein and Hear Rehnan Morgan, who were arrested in US in connection with massive cryptocurrency scam. In August 2016, a couple hacked bitcoin website for cryptocurrency tring and stole 1,19,754 bitcoins worth $71 million (Rs 7.10 crore).

Bengaluru Commissioner of Police B Dayanand has said, "Cases have been registered at Cottonpet police station in connection with bitcoin scam. Its network is suspected to have spre nationally and internationally. act was committed by experts in technical forensics. An investigation into Bitcoin is alrey underway. Apart from that, I have requested DG-IGP conduct a furr investigation. government's procurement website was also hacked. It was found that national and international hackers h joined hands. scope of this has increased, and I have requested a high-level probe by Special Investigation Team. DG-IGP will decide which ncy to conduct investigation."