Bitcoin case: ED arrests hacker, aides aids in Rs 11.5 crore Bitcoin scam in Bengaluru

Bengaluru: The Enforcement Directorate on Friday arrested Bengaluru-based hacker Srikrishna Ramesh alias Sriki, along with his associates Robin Khandelwal and Sunish Hegde. 

Sriki was first arrested in November 2020 in a case related to buying hydro ganja on the dark web using Bitcoins.

The Congress government, led by Chief Minister Siddaramaiah, formed an SIT in 2023 to investigate the case. 

During the probe, it was found that Sriki allegedly hacked into online poker sites, crypto exchanges and other websites. Further investigations also revealed his alleged role in the hacking of the state government's e-procurement portal to the tune of Rs 11.5 crore in 2019. 

Picked up from his Jayanagar residence 

On Saturday, the accused were produced before the judge at his residence office in National Games Village. During the hearing, counsel appearing for Sriki, submitted medical records and argued that the accused was suffering from mental health issues.

However, the court declined to consider the plea and granted a 10-day custody of all the accused to the central agency for interrogation.

Sriki was nabbed from his Jayanagar residence near Ashoka Pillar. 

The agency had recently conducted searches at the residence of Mohammed Harris Nalapad, an associate of Sriki, as a as part of its probe into the alleged bitcoin scam and cyber-heist network.

However, Nalapad had claimed that he had no links with Sriki and that he was only a a friend. The CID had earlier investigated Sriki and others in connection with the alleged hacking of online poker sites, crypto exchanges and other websites. 

A separate case was also registered at the Cottonpet police station over allegations of hacking gaming websites and procuring narcotic substances through the darknet using Bitcoin.

The case stems from multiple FIRs and chargesheets filed by the Karnataka Police since 2020 over allegations of hacking national and international websites, stealing bitcoins, extortion and laundering cryptocurrency proceeds through multiple bank accounts and trading platforms.

Investigators suspect the accused used to hacked digital wallets and online gaming applications, including rummy culture, to siphon off virtual assets and conceal the money trail. 

According to officials, the ED is probing allegations related to the theft of Rs 11.5 crore from the Karnataka government’s e-procurement portal, hacking of gaming websites, and laundering of proceeds through cryptocurrency exchanges abroad.

The agency is also probing allegations that portions of the proceeds were used to purchase narcotics through darknet platforms. The ED had earlier searched around 12 premises linked to the accused and their associates under the Prevention of Money Laundering Act.