The prime suspect was accused of hacking the state government's e-procurement website and siphoning over ₹11.5 crore.
Published Jul 03, 2023 | 5:56 PM ⚊ Updated Jul 03, 2023 | 5:56 PM
Money stolen from people was converted into cryptocurrency and sent to operators in China and Dubai. (iStock)
Karnataka Home Minister G Parameshwara on Monday, 3 July, said a Special Investigation Team (SIT) under the Criminal Investigation Department (CID) has been formed to reinvestigate the Bitcoin scam.
The Bitcoin scam surfaced during the previous BJP regime in 2021, and the Congress, which was then in Opposition, had accused the government of covering up the scandal as it involved big names.
The prime suspect, Srikrishna Ramesh alias Sriki, was accused of hacking the state government’s e-procurement website and siphoning off over ₹11.5 crore.
There were also charges of cryptocurrency theft, drug peddling and cyber fraud relating to the case.
Ramesh was arrested by the Central Crime Branch (CCB) police on 18 November, 2020, in a drug peddling case. He allegedly bought drugs from international dealers using Bitcoins.
During the interrogation that followed, it was revealed that he was involved in a series of cyber crimes.
According to reports, he had hacked several websites and locked their owners out, and asked them for payments in Bitcoins to give back access to them.
He also confessed of phishing several people for credit or debit card information to steal money. Phishing is the process of creating fake landing pages mimicking the original pages and deceiving people into revealing sensitive information.
Before the Assembly elections in May, the Congress had promised that if it comes to power, it would reinvestigate the Bitcoin scam, Parameshwara told reporters in Bengaluru.
“Accordingly, we have decided to hand it over to a Special Investigation Team. We have constituted the SIT under the Criminal Investigation Department,” the minister said, adding that orders have been issued in this regard.
“We hope that the SIT will do justice. Manish Kharbikar, an ADGP, has been entrusted with the responsibility. He can also take the help of technical people because this is related to cyber. Anything related to technical aspects… they can also take the help of different sources,” he explained.
Regarding any possible assistance from central agencies, Parameshwara said he has advised the SIT to take the help of whoever is required.
“If there is a separate order required to that effect, we will definitely do so. It depends. When they (SIT) start the investigations, then we will come to know about their requirements,” the minister pointed out.
The government took the decision keeping all the aspects into consideration, Parameshwara said.
“It (the investigation) should not be some sort of a repeat. We want to investigate this more seriously. Lots of lapses have happened. Those things (have) to be covered by the SIT”.
On the possibility of forming two special courts to prosecute the Bitcoin cases, Parameshwara said the investigation should begin first and the government would do whatever is required as far as probe and legal aspects are concerned as the case proceeds.
Earlier, Bengaluru City Commissioner of Police B Dayananda said there was suspicion that the Bitcoin scam case involved a network of national and international levels.
“Since it is apparent that this act was done using high-end technological methodologies, we have written to the Director General of Police with a view that an expert investigation agency should conduct a high-level probe,” Dayananda told reporters.
According to him, one stage of investigation has happened, and further probe was needed to trace the involvement of some more networks because some hackers were involved, who had hacked it in an expert manner.
“They (hackers) have also hacked the government’s e-procurement portal. So, an organised investigation was required,” the police Commissioner said.
Sriki, who has been projected as the kingpin, was arrested after he fell into the police radar for his lavish lifestyle.
(With PTI inputs)
