Karnataka home minister G Parameshwara on Monday said a Special Investigation Team (SIT) under the Criminal Investigation Department (CID) has been formed to reinvestigate the ‘Bitcoin scam.’“We have taken a decision to hand it over to a Special Investigation Team. We have constituted the SIT under the Criminal Investigation Department,” the home minister said, adding that orders have been issued in this regard.

“We hope that the SIT will do the 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.

The Bitcoin scam had rocked the previous BJP government led by Basavaraj Bommai in 2021, and the Congress, which was then in the Opposition, had demanded a judicial probe in the case. The Congress had accused the government of trying to cover up the scandal as it involved several BJP leaders.
Last week, Bengaluru police commissioner B Dayananda had written a letter to DG and IGP Alok Mohan seeking a probe by a special investigation agency as the case involves a detailed investigation into cybercrime. The probe will be headed by ADGP Manish Karbikar.

The bitcoin case refers to the alleged laundering of money by senior government officials and top leaders of the state BJP through cryptocurrencies. The prime suspect, Srikrishna Ramesh alias Sriki, was accused of hacking the state government’s e-procurement website and siphoning over ₹11.5 crore.

On November 4, 2020, Bengaluru’s central crime branch police arrested Srikrishna under the Narcotic Drugs and Psychotropic Substances Act for allegedly procuring drugs using bitcoins via the darknet and peddling it to high-profile clients. Investigations in the drug case led to the CCB filing a second case against the hacker for allegedly hacking online poker sites and crypto exchanges to acquire wealth through illegal means. He was released on bail on April 17, 2021.the Congress government had promised to investigate all irregularities and scams including the Bitcoin scam and in public works, that emerged during the tenure of the erstwhile BJP government.

Regarding any possible assistance of 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 home minister pointed out.

After the state government’s official statement, Minister Priyank Kharge said, “As I said, STF, SIT, judicial inquiries and departmental inquiries will happen. We already formed Kalyana Karnataka Region Development Board…SIT, bitcoin…it’s just a matter of time. We came to power a month back and already 2-3 investigations are going on, including in my own department. We will ensure that people get justice for all the injustice that happened in the previous regime.”