- India’s Bitcoin scam investigation is evolving from a cybercrime case into a major political flashpoint.
- Karnataka SIT names Mohammed Haris Nalapad, son of Congress MLA, in crypto fraud case.
- India faces rising crypto crime, with the Bitcoin probe highlighting enforcement challenges.
India’s Bitcoin scam investigation has taken on a political dimension after Karnataka Home Minister Priyank Kharge suggested that leaders from the opposition Bharatiya Janata Party (BJP) could also be named in the case.
The remarks followed reports that the Karnataka Police Special Investigation Team (SIT) had named Mohammed Haris Nalapad, the son of Congress MLA N.A. Haris, as an accused in a cryptocurrency-linked fraud investigation. The development has drawn wider political attention to the case as the probe continues.
Speaking to reporters in Bengaluru, Kharge said the investigation was being handled transparently and indicated that it could extend beyond a single political party. “As per my knowledge, there are many other names, including those of BJP leaders,” he said. “It will also come forward.”
SIT Charge Sheet Expands Investigation
The case is based on a charge sheet filed by the Special Investigation Team (SIT) in a Bengaluru court on May 20. According to reports, investigators named Mohammed Haris Nalapad as one of the alleged beneficiaries in a cryptocurrency theft linked to a 2017 breach of the Tumakuru-based Unocoin exchange.
At the time of the hack, the stolen cryptocurrency was valued at about ₹1.14 crore. At current market prices, the assets are now estimated to be worth more than ₹35 crore.
Investigators say Mohammed was involved in converting the stolen cryptocurrency into cash through hawala channels.
The charge sheet also names Srikrishna Ramesh, widely known as “Sriki,” as the alleged mastermind, along with accountant Robin Khandelwal. Both have been placed in judicial custody following recent arrests connected to the investigation.
India Faces Rising Crypto Crime Challenges
The Bitcoin investigation comes amid a broader rise in cryptocurrency-related crime across India.
In a recent case, the Delhi High Court denied anticipatory bail to an accused in a ₹1 crore crypto fraud involving USDT transactions, underscoring stricter judicial scrutiny of digital asset-linked offenses.
In Gujarat, police arrested two suspects in a separate investigation linked to alleged terror financing, narcotics trafficking, and cryptocurrency transfers. Authorities said the suspects received 5,000 USDT through wallets allegedly connected to sanctioned entities.
Separately, Delhi Police dismantled a cyber fraud network accused of laundering more than ₹74 lakh through cryptocurrency channels.
Related: Gujarat Cyber Cell Busts ₹226 Crore Crypto-Terror Syndicate
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