Special Investigation Team (SIT) Probes Indian Officers in Bitcoin Scam

The Special Investigation Team (SIT) has intensified its probe into a major Bitcoin scam, issuing a notice to Inspector General of Police (IGP) Sandeep Patil. 

Patil, who led the Central Crime Branch during the alleged scam, has been called to clarify certain aspects of the investigation previously conducted under his supervision. This inquiry highlights ongoing concerns over the handling of cybercrimes involving cryptocurrency in India.

A police officer in Bengaluru, who has been named in a Bitcoin scam-linked case, has been accused of attempting to murder a member of the Special Investigation Team (SID) when he was trying to arrest him on Tuesdayhttps://t.co/YxCHb8XXbz

— The Indian Express (@IndianExpress) February 29, 2024

Details of the Investigation and Allegations

The Bitcoin scam centers around hacker Srikrishna Ramesh, known as Sriki, and his associate Robin Khandelwal. Sriki is accused of hacking into the Unocoin cryptocurrency exchange in 2017 and stealing 60.6 Bitcoins, valued at approximately ₹1.14 crore at that time. 

Further allegations suggest that he laundered these funds through various online platforms. The duo faced arrest in 2020 on charges related to the online purchase of drugs using Bitcoin, which brought them under closer scrutiny.

The SIT has implicated several former officers of the Crime Branch in manipulating the probe to cover up the alleged misappropriation of Bitcoins. Among those named are Sridhar Poojar, Prashanth Babu, Chandradhar SR, and Lakshmikanthaiah. A private cyber expert, KS Santhosh Kumar, who assisted in the investigation, has also been implicated. The Crime Branch’s initial claim was the recovery of 31 Bitcoins worth ₹9 crore from Sriki, which later could not be accounted for, raising questions about the integrity of the investigation.

Legal Proceedings and Further Developments

In recent court proceedings, the SIT highlighted discrepancies in the original investigation, particularly the unexplained disappearance of the 31 Bitcoins. The explanation provided by the Crime Branch was that Sriki had manipulated the Bitcoin core application to mislead the investigation. 

However, the SIT criticized the lack of depth in the investigation into how the Bitcoin core application was allegedly tampered with.

Additionally, the probe has widened to include Rishab, the son of an Additional Director General of Police (ADGP), who is under investigation for his alleged involvement in the scam. Accusations against Rishab involve the utilization of funds obtained through Bitcoin trading to purchase a luxury car. This line of inquiry underscores the broader implications of the scam, touching upon the involvement of individuals connected to high-ranking officials.

The ongoing investigation by the SIT reflects a broader crackdown on cryptocurrency-related scams in India. With the rise of digital currencies, the country has seen an increase in related criminal activities, prompting authorities to adopt more stringent measures. Earlier actions this month by India’s Enforcement Directorate, which included the seizure of over $30 million linked to cryptocurrency scams, indicate a concerted effort to tackle such financial crimes.