Several officers from the Indian Crime Branch, including an Inspector General of Police (IGP), are under investigation by a Special Investigation Team (SIT) in connection with a Bitcoin scam.
The SIT has issued a notice to Inspector General of Police (IGP) Sandeep Patil, who was leading the Crime Branch at the time, to address discrepancies in the investigation into a Bitcoin scam.
The scam centers around hacker Srikrishna Ramesh, also known as Sriki, and his associate Robin Khandelwal. Sriki, the mastermind behind the scam, hacked a cryptocurrency exchange, Unocoin, in 2017, stealing 60.6 Bitcoins worth ₹1.14 crore (approximately $137,000) at that time. He also hacked various other online platforms, laundering the funds using cryptocurrency.
Sriki then traded 150 Bitcoins worth ₹5.5 crore through Khandelwal. The duo was initially arrested in 2020 on charges of ordering drugs online using Bitcoin.
According to a first information report (FIR) filed by the SIT in January, four former Crime Branch officers—Sridhar Poojar, Prashanth Babu, Chandradhar SR, and Lakshmikanthaiah—along with Santhosh Kumar, a private cyber expert, are being charged with illegal confinement, breach of trust by a public servant, and destruction of evidence related to the Bitcoin scam.
The allegations include manipulating the investigation to cover up the misappropriation of Bitcoins recovered during the probe.
Initially, investigators claimed to have recovered 31 Bitcoins worth ₹9 crores from Sriki and 0.08627702 BTC from Khandelwal. However, these Bitcoins were never found.
The explanation provided was that Sriki had “manipulated the Bitcoin core application to mislead the investigation.” Despite this claim, the Crime Branch failed to investigate further into how and when the manipulation occurred.
Additionally, the SIT’s findings indicate that Inspector Chandradhar took Khandelwal into custody and coerced him to transfer money from his account to the crypto exchange WazirX to purchase Bitcoins.
This was allegedly done to compensate for the Bitcoins that the Crime Branch could not recover from Khandelwal, who had exhausted his crypto resources.
The SIT is also investigating Rishab, the son of an Additional Director General of Police (ADGP), for alleged involvement in the scam. He has been accused of using illegal money acquired through Bitcoin trading. The SIT alleges that he received a cheque for ₹40 lakh during the period when Sriki was active and that he used this money to purchase a car.
This investigation comes as India faces a rise in cryptocurrency-related scams. Earlier this month, the nation’s Enforcement Directorate cracked down on two major scams and seized over $30 million. Prior to that, the ED collaborated with the FBI to dismantle a $360 million drug trafficking ring powered by cryptocurrencies.
Summary Review: The ongoing investigation into the Bitcoin scam involving several high-ranking officials in the Indian Crime Branch highlights the pervasive challenges and complexities of regulating cryptocurrency activities. The involvement of prominent figures and the sophisticated methods used to manipulate the investigation underscore the need for stringent oversight and robust cybersecurity measures. As India continues to grapple with the rise in cryptocurrency-related crimes, this case serves as a critical reminder of the importance of transparency and accountability in law enforcement. The crackdown on such scams is crucial for maintaining public trust and ensuring the integrity of financial systems.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
