Bitcoin scandal: Karnataka govt to handover case to CID for re-investigation

Bengaluru: The Congress government in Karnataka is set to handover the bitcoin scandal case to the Criminal Investigation Department (CID) for re-investigation, sources said.

The sources confirmed that the state government is likely to issue an official order in this regard in two days.

B. Dayanand, the Police Commissioner for Bengaluru, has written to Karnataka DGP Alok Mohan and requested to handover the investigation of the case to the CID.

Recently, state Home Minister Dr. G. Parameshwara had stated that he would get the scam re-investigated.

The sources said that now it is up to Chief Minister Siddaramaiha to give a green signal for the state police chief to handover the case.

The scandal had taken place after the arrest of international hacker Srikanth, aka Sriki, by the CCB police in Bengaluru.

It was alleged the former JP leaders had minted huge sums of money by allowing him to commit the scandal while he was custody in 2020 for allegedly selling drugs.

Probe has revealed that the accused had siphoned off Rs 11 crore by hacking into online gaming companies and government web portals.

He then converted the money into bitcoins and carried out drug peddling in Bengaluru.

Karnataka Congress in-charge Randeep Singh Surjewala had attacked the Centre and former Chief Minister Basavaraj Bommai over the bitcoin scandal.

“What is the role and responsibility of the Basavaraj Bommai? (who was the home minister incharge at the relevant time) and others in the state government?.

“The layers of the Bitcoin scam are finally being unearthed. Let India’s Home minister and Chief Minister Bommai answer. FBI in India to investigate India’s biggest Bitcoins scam cover up under Karnataka BJP government. If so, release details of the investigation and suspects including political people,” he had stated.

“How many Bitcoins were stolen? and of what value? Who in Karnataka is involved? Were the stolen Bitcoins transferred from the wallet of the arranged hacker Sri Krishna?

“Whether the ‘Whale Alerts’ reflecting the transfer of the 14,682 stolen Bitfinex Bitcoins valued at Rs 5,240 crors on the two dates December 1, 2020 and 14 April, 2021 when Shri Krishna was in custody has any correlation?

“Why was Interpol not informed? Why did the BJP government wait for over 5 months up till 24th April 2021 to write to interpole and that also after the release of Sri Krishna on 17th April 2021.”

He also questioned why the National Investigation Agency (NIA), Serious Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) were not informed by the Karnataka BJP government.

Minister for RDPR, IT and BT Priyank Kharge, then stated: “I believe the FBI is in Delhi to investigate the billion dollar Bitcoins scam. Like I said before, if the state investigates the matter, a lot of BJP’s skeletons will tumble out of the layers of Bitcoins scam.”

In response, Bommai had Surjewala to submit any information regarding the scandal.

“From my side, I have given a reply to the issue in the Legislative Assembly itself, if he (Randeep Surjewala) has any information on the issue let him submit. Instead tweeting is meaningless,” he quipped.