Indian crime officials being probed in major Bitcoin scam

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As a researcher with a background in investigative journalism, I find this situation deeply concerning. The alleged involvement of high-ranking police officers in a Bitcoin scam is not only shocking but also a clear indication of the systemic corruption that can exist within law enforcement agencies.

As a researcher, I’ve come across information indicating that a group of police officers, among them an Inspector General of Police (IGP), from the Indian Crime Branch are currently under investigation by a Special Investigation Team (SIT). This is due to their involvement in a Bitcoin scam.

The Crime Branch, headed by IGP Sandeep Patil at the time, has received a query from the State Intelligence Team (SIT) requesting explanations for inconsistencies uncovered during their probe into the Bitcoin scam investigation.

In 2017, Srikrishna Ramesh, who goes by the aliases Sriki and mastermind, orchestrated a scam that involved hacking the cryptocurrency exchange Unocoin. During this breach, he made off with 60.6 Bitcoins, valued at around ₹1.14 crore ($137,000) at the time. Additionally, Srikrishna gained unauthorized access to numerous other online systems and laundered the stolen funds using cryptocurrency.

In 2020, Sriki and Khandelwal were taken into custody for allegedly purchasing illicit substances online using a transaction worth ₹5.5 crore, which equated to approximately 150 Bitcoins at the time.

Based on the initial report filed by the Special Investigation Team (SIT) in January, I have come across allegations against four former Crime Branch officers – Sridhar Poojar, Prashanth Babu, Chandradhar SR, and Lakshmikanthaiah – as well as a private cyber expert named Santhosh Kumar. These individuals are currently facing charges for their roles in the Bitcoin scam. Specifically, they are being accused of illegal confinement, breach of trust by public servants, and destruction of crucial evidence related to this case.

“The accusations involve doctoring the investigation to conceal the misuse of Bitcoins that were discovered during the examination.”

At first, the investigators announced the discovery of approximately 31 Bitcoins valued at around 9 crores from Sikri’s possession and a negligible amount, specifically 0.08627702 Bitcoins, from Khandelwal’s. Yet, upon further search, these Bitcoins could not be located.

The account given was that Sriki allegedly tampered with the Bitcoin core software to deceive the investigation. However, the Crime Branch neglected to delve deeper into the specifics of when and how this manipulation is believed to have taken place.

Moreover, the Special Investigation Team’s report reveals that Inspector Chandradhar arrested Khandelwal and forced him to move funds from his own account towards the crypto platform Wazirx, in order to buy Bitcoins.

It has been claimed that this action was taken to make up for the Bitcoins that the Crime Branch were unable to retrieve from Khandelwal, as he had already used up all of his cryptocurrency holdings.

The Special Investigation Team (SIT) is currently looking into reports that Rishab, the son of an ADGP, may have been involved in the ongoing scam. It’s been claimed that he made ill-gotten gains through Bitcoin trading and was paid ₹40 lakh in the form of a check during the relevant timeframe. According to the SIT, this money was then used by Rishab to buy a new vehicle.

India has experienced an uptick in cryptocurrency-related frauds in recent years, leading to the latest action by the Enforcement Directorate (ED). Just this month, the ED dismantled two significant scams and recovered approximately $30 million in ill-gotten gains. Previously, working alongside the FBI, the ED successfully dismantled a criminal network that used cryptocurrencies to launder an estimated $360 million from drug trafficking activities.

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2024-05-15 12:36