Karnataka crypto scam: Blacklisted Bitfinex bitcoins transferred to unknown wallets

While the transfer on December 1, 2020 moved 5,018.48 blacklisted bitcoins to 14 accounts, 63 wallets were debited with the stolen bitcoins on April 14

The blacklisted coins from the 2016 Bitfinex hack was transferred to unknown wallets on two specific dates - December 1, 2020 and April 14, 2021. The total number of bitcoins transferred on these dates were 15,075.55 - worth around Rs 6,500 crore today.

Srikrishna Ramesh alias Sriki, the 25-year-old hacker who is now behind bars, has claimed responsibility for the Bitfinex hack in a charge sheet submitted by the police.

While the transfer on December 1 moved 5,018.48 blacklisted bitcoins to 14 accounts, 63 wallets were debited with the stolen bitcoins on April 14. Among the transfers was 1,241.37 coins to one wallet - worth around Rs 550 crore - in April.

The transfers made on December ranged from 270.98 bitcoins to 469.9 bitcoins - worth around Rs 132 crore to Rs 215 crore today at Rs 46.02 lakh per bitcoin. In December 2020, each bitcoin was worth Rs 14 lakh.

Also Read | Karnataka crypto scam: Charge sheet silent on Bitcoins worth Rs 9 crore

On April 14, 2021, transactions of the stolen bitcoins for unknown wallets ranged from 1.8827 bitcoins (worth around Rs 80 lakh) to 1,241.37. Price of each bitcoin in April was around Rs 45 lakh.

Sriki, it can be recalled, was arrested by Bengaluru police on November 18, 2020. He was subsequently sent to City Crime Branch custody on December 4, 2020 for 13 days.

According to Sreeki’s statement in the charge sheet, he was part of a hacking group that broke into Bitfinex - a crypto currency exchange. He claims to have hacked into the exchange twice. Bitfinex, following the hack in 2016, said that around 1.19 lakh bitcoins were stolen from the exchange. Two Israeli hackers - Eli and Assaf Gigi - were arrested in 2019 but not all the stolen bitcoins were recovered from him.

Sources told DH that the bitcoins were transferred to an unregulated, de-centralised exchange and converted as cash. The amount was then likely transferred to a venture capital firm before it reached bank accounts of various individuals, sources said.

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