Stepping up the investigation following recent raids, officials of the Directorate of Enforcement (ED) on Saturday arrested prime accused in the Bitcoin scam case, Srikrishna alias Sriki, along with two others in Bengaluru.
The ED arrested Sriki, Robin Khandeval and Sunish Hegde in connection with the alleged cryptocurrency scam. The trio was produced before a special ED court, and taken into custody for 10 days for further interrogation.
The central agency has been probing the alleged Bitcoin scam for the past several years over accusations of illegal cryptocurrency transactions, hacking and financial irregularities.
As part of the ongoing investigation, ED officials had recently conducted searches at multiple locations linked to the accused and their associates.
The case had earlier sparked major political controversy in Karnataka, with allegations surrounding the handling of seized bitcoins and the possible involvement of influential persons.
On April 20, the agency carried out raids at 12 locations, including premises allegedly linked to Sriki, the sons of Shantinagar MLA N.A. Haris, Mohammed Haris Nalapad and Omar Farook Nalapad, and Mohammed Hakeeb Khan, the grandson of former Union Minister K. Rehman Khan.
The case is related to a 2017 hacking incident involving national and international websites, in which bitcoins were allegedly stolen by Sriki and his associates. Mohammed Haris and Omar Farook are allegedly suspected to be beneficiaries of the proceeds of crime. Investigators believe that bitcoins hacked from a Dubai-based crypto exchange were routed to the Nalapads, with the ED tracking the digital trail.
The ED also raided the residence of Mohammed Hakeeb Khan. Officials alleged there were suspicious money transfers through his bank accounts, prompting the searches. Transactions between Hakeeb Khan and Sriki are also under the scanner as part of the broader probe. The case had earlier been probed by the Central Crime Branch (CCB) and the Criminal Investigation Department (CID) before ED took over.