ED Arrests Bitcoin Scam Accused Sriki, Two Others in Bengaluru

The Enforcement Directorate (ED) on Saturday arrested Srikrishna alias Sriki, the main accused in a cryptocurrency scam, along with Robin Khandeval and Sunish Hegde in Bengaluru. The arrests stem from an investigation into a 2017 hacking incident that allegedly involved the theft of bitcoins from a Dubai-based crypto exchange and subsequent money laundering through Indian accounts.

The ED conducted raids at 12 locations on April 20, including properties linked to Sriki and individuals connected to Karnataka political figures, such as Mohammed Haris Nalapad and Omar Farook Nalapad, sons of Shantinagar MLA N.A. Haris, and Mohammed Hakeeb Khan, grandson of former Union Minister K. Rehman Khan. Investigators traced digital transactions indicating that hacked bitcoins were routed to the Nalapads, with suspicious financial activity detected in Hakeeb Khan’s bank accounts.

The case, initially investigated by Karnataka’s Central Crime Branch (CCB) and Criminal Investigation Department (CID), was transferred to the ED over allegations of large-scale financial irregularities and cross-border cryptocurrency transactions. The agency has seized digital evidence and is analyzing blockchain trails to trace the movement of illicit funds.

The arrests come amid political scrutiny in Karnataka over the handling of seized digital assets and potential sheltering of suspects. The accused have been remanded to 10-day ED custody and produced before a special court for further legal proceedings.

The ED is expected to file a chargesheet in the case within the stipulated timeframe, while further forensic analysis of digital devices and financial records is ongoing. The court will review the custody extensions and evidence compilation in the coming weeks.