Karnataka Bitcoin Scandal; SIT Accuses Crypto Exchange Founder of Bribing Police to Recover 60.6 Stolen Bitcoins

a golden bitcoin on a blue hexagonal background

In 2020, a hacker known as Srikrishna Ramesh (alias Sriki) was arrested for allegedly stealing 60.6 Bitcoins in 2017. The Special Investigation Team (SIT) investigating the case says that the proprietor of a cryptocurrency exchange bribed the police with Rs 7 lakh to assist in the recovery of the stolen Bitcoins.

The Special Investigation Team (SIT) formed to probe the case suspects that Sriki may have amassed over 200 crore rupees (approximately $27 million) worth of Bitcoin through illegal activities.

Allegations against the Crypto Exchange Founder:

The SIT reportedly claims that the founder of a cryptocurrency exchange paid 7 lakh rupees (approximately $9,300) to a police officer in exchange for help recovering the stolen Bitcoin.

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The officer allegedly facilitated illegal access to Sriki’s cryptocurrency wallets and transferred some Bitcoin to his own wallet before the official seizure process.

The SIT is seeking to recover the missing Bitcoin and is investigating the alleged involvement of the police officer and the crypto exchange founder.

The Evidence:

The SIT apparently has digital evidence indicating that the police entered Sriki’s Bitcoin wallets and email accounts without authorization. They also suspect that two of the three “nano ledgers” carrying the stolen Bitcoins are gone.

“The accused number 1 (cyber expert Santhosh Kumar) and accused number 2 (Babu) illegally collected an amount of Rs 7 lakh from Harish with the assurance of recovering the Bitcoin he (Harish) had lost, it has been gathered from the questioning of the accused,” the SIT informed a local court in a remand plea two weeks ago.

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The Controversy:

This claim has sparked alarm about possible police participation in the abuse of confiscated bitcoins. The Congress party claims bribes were made to police and lawmakers during the previous BJP government’s term.

The Current Status:

The inquiry is still underway, and the SIT is requesting a custodial questioning of a former crime branch officer to retrieve the lost nano ledgers. The alleged police officer and the founder of the cryptocurrency exchange have disputed the charges.

William Ross
About William Ross 165 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.