Karnataka Bitcoin scam: SIT issues new notice to Youth Congress chief Mohammed Haris

The announcement to Mohammed Nalapad comes astatine a clip erstwhile the SIT is reported to beryllium successful the process of finalising 2 chargesheets successful the Bitcoin scam astir the engagement of constabulary officers successful destroying grounds and the alleged embezzlement of cryptocurrency from Sriki aft his apprehension successful November 2020.

The SIT, which is probing alleged constabulary corruption successful the archetypal handling of the hacking cases of the hacker pursuing his arrest, is besides looking astatine instances of imaginable usage of stolen cryptocurrency by the hacker successful relation with respective high-profile friends from 2017 to 2023.

The SIT began its probe into the Bitcoin scam successful June 2023. Last year, the SIT filed a chargesheet against Sriki and his accountant Robin Khandelwal successful transportation with the hacking of Unocoin Technology Pvt Ltd’s crypto speech successful Karnataka that occurred connected June 23, 2017. This incidental resulted successful the theft of 60.6 Bitcoins, which were valued astatine Rs 1.14 crore based connected the prevailing complaint of Rs 1.67 lakh per Bitcoin astatine that time.

Links of hacker to Mohammed Haris

Statements made to the constabulary by Khandelwal, a Bitcoin trader based successful Kolkata who besides served arsenic a crypto money manager, suggested a transportation betwixt the Nalapad brothers and the hacker. These statements were provided pursuing Khandelwal’s apprehension by the Bengaluru transgression subdivision constabulary successful November 2020. Khandelwal reported that helium travelled to Bengaluru successful 2018. This travel followed his online gathering with Sriki, during which helium conducted respective cryptocurrency trades connected Sriki’s behalf.

During the sojourn to Bengaluru successful January 2018, Khandelwal reported gathering Sriki astatine a five-star edifice with his friends, including Mohammad Nalappad, Omar Nalapad and their subordinate Mohammed Nafi, among others, arsenic per the voluntary statement.

“At this time, Srikrishna had hacked the databases of Bitcoin exchanges and kept a batch of Bitcoins with him. He showed maine the Unocoin database,” arsenic per Khandelwal’s statement.

In February 2018, Mohammed Nalapad was arrested pursuing a brawl astatine a pub successful cardinal Bengaluru. During this incident, Srikrishna, who was with him, allegedly fled the metropolis and reportedly with his money manager successful Kolkata and different locations.

There is nary grounds of nonstop fiscal transactions betwixt the hacker and the Nalapad brothers, including their money manager. However, the hacker stated to the CID constabulary successful 2021, pursuing his apprehension for a hacking incidental astatine the Karnataka government’s e-procurement portal successful July 2019 that resulted successful a ₹11.5 crore heist, that helium had made an “investment” of 150 Bitcoin and 1,100 Ethereum with Mohammed Nalapad aft gathering the brothers successful 2017.

Police sources earlier reported that Srikrishna claimed helium would springiness distant the cryptocurrency helium possessed to definite associates. However, those named by the hacker person denied these claims. According to the sources, the statements made by Srikrishna are presently being investigated and verified.

Several politicians and officials successful Karnataka had their sons and relatives allegedly associated with Sriki betwixt 2017 and 2020. Many reportedly utilized his hacking skills for idiosyncratic gain, peculiarly successful online gambling and different hacking activities. A elder IPS officer’s lad was questioned by the SIT past twelvemonth regarding his engagement successful the acquisition of a Porsche Macan car worthy Rs 57 lakh by a radical of youths. The funds for this were provided by Khandelwal successful January 2018.

SIT sources indicated that the probe into the hacker cases is successful the last stages, with chargesheets being prepared for 2 cases registered successful September 2023 and January 2024 against constabulary officers and others. They said the SIT is seeking authorities support to prosecute 4 constabulary officers who were arrested successful the lawsuit past year.

The Bitcoin scam: A timeline

Following his apprehension successful November 2020, Sriki claimed to the constabulary that helium had hacked aggregate planetary exchanges betwixt 2016 and 2020 and utilized stolen Bitcoin to pb a lavish manner with his associates. He besides alleged that helium handed implicit a ample cache of cryptocurrency successful his possession to constabulary officials aft his arrest.

In effect to allegations of large-scale corruption involving transgression subdivision policemen and governmental leaders regarding the handling of the hacker’s cases during the 2019-2023 tenure of the BJP authorities successful Karnataka, the recently formed Congress authorities established the SIT successful June 2023 aft coming to powerfulness successful May 2023.

Over the past year, respective constabulary officers who were portion of the Bengaluru transgression subdivision during 2020-2021 person been investigated by the SIT. Four officers and a cyber adept who assisted the constabulary successful probing the hacker’s cases person been arrested for wrongdoing.

Based connected statements from witnesses who aided the probe successful 2020, the SIT argued for the denial of bail to 2 constabulary officers accused successful the scam, stating that the hacker Sriki was successful possession of implicit 4,000 Bitcoins, valued astatine astir Rs 850 crore, astatine the clip of his apprehension successful November 2020.

Srikrishna and his accountant Khandelwal were initially arrested by the Bengaluru transgression subdivision successful November 2020 connected charges of purchasing drugs online utilizing Bitcoin. This lawsuit involving cause purchases connected the darknet yet led to the uncovering of respective cyber crimes successful Karnataka, including a Rs 11.5 crore money heist from the Karnataka e-governance compartment successful 2019.

At the clip of the hacker’s apprehension successful 2020, the worth of 1 Bitcoin was successful the scope of $20,000 (around Rs 20 lakh), and it surged to arsenic precocious arsenic $50,000 (around Rs 50 lakh) by April 2021. The worth of 1 Bitcoin precocious deed $1,00,000.