ED arrests Sriki, two aides in bitcoin scam case

Bengaluru: Bengaluru-based hacker Srikrishna Ramesh alias Sriki, along with his associates Robin Khandelwal and Sunish Hegde, were remanded to 10-day custody of the Enforcement Directorate on Saturday after the central agency picked Sriki from Bengaluru on Friday. 

The ED 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.

Sriki was first arrested in November 2020 in a case related to buying hydro ganja on the dark web using bitcoins. During the probe, it was found that he allegedly hacked into online poker sites, crypto exchanges and other websites. Further investigations also revealed his alleged role in stealing Rs 11.5 crore after hacking into the state government’s e-procurement portal in 2019. 

The Congress government formed an SIT in 2023 to investigate the case. 

On Saturday, the accused were produced before a judge. During the hearing, the counsel for Sriki submitted medical records and argued 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 part of its probe into the alleged bitcoin scam and cyber-heist network.

However, Nalapad had claimed that he had no links with Sriki. 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 Cottonpet police station over allegations of hacking gaming websites and procuring narcotic substances through the darknet using bitcoin.

Investigators suspect the accused used 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.