Bengaluru: Karnataka’s political landscape has been jolted once again after the Enforcement Directorate (ED) carried out coordinated raids in connection with the alleged Bitcoin scam, triggering a fresh war of words between the Bharatiya Janata Party and the ruling Congress.
The ED searches, conducted under provisions of the Prevention of Money Laundering Act (PMLA), targeted at least 12 locations across the state. Among those covered were premises linked to prime accused Srikrishna Ramesh, alias ‘Sriki’, and residences associated with Congress MLA NA Haris, including those of his sons Mohammed Nalapad and Omar Farooq Nalapad.
Officials began the operation early Monday morning, including a search at the MLA’s residence on McGrath Road in Bengaluru. The raids also extended to properties linked to Akeeb Khan, reportedly a relative of former Union Minister K. Rahman Khan, as well as other individuals suspected to have links with the accused.
Background of the case
The Bitcoin scam, which has been under scrutiny for several years, revolves around allegations that Sriki hacked into international websites, gaming applications, and even government portals to siphon off funds in cryptocurrency. Investigators claim that the accused not only stole sensitive data but also monetised it by selling it on the dark web and routing the proceeds through multiple bank accounts.
The Karnataka government had constituted a Special Investigation Team (SIT) on June 30, 2023, to probe the matter. The SIT has since investigated at least nine cases registered across police stations such as Cottonpet, K.G. Nagar, and Ashok Nagar, along with the CID Cyber Crime unit. Charge sheets have reportedly been filed in several of these cases.
The ED’s current operation focuses on suspected money laundering linked to these activities. Officials are examining financial transactions, including alleged fund transfers between the accused and their associates. Sources indicate that the probe is attempting to trace the movement of cryptocurrency funds and establish whether any proceeds of crime were shared among individuals now under scrutiny.
BJP launches sharp attack
The Bharatiya Janata Party severely condemned the involvement of Congress Party leaders in the bitcoin scam targeting the ruling Indian National Congress. BJP leaders alleged that the raids have exposed what they described as the “true face” of the Congress government in Karnataka.
In a strongly worded post on social media, the BJP claimed that “corruption is the real guarantee of Congress,” accusing the party of being deeply entrenched in financial irregularities. The party asserted that the ED’s operation against individuals linked to a Congress MLA demonstrates systemic corruption and misuse of power.
“The dark truth of the Bitcoin scam is unfolding day by day. The ED raids on the residences of a Congress legislator and his associates have stripped away the façade of clean governance,” the BJP said, demanding accountability from the state leadership.
The opposition party further alleged that the Congress government has failed to act decisively in the past and accused it of shielding those involved. BJP leaders also sought a broader probe into possible political links in the case, hinting at what they described as a “larger network of corruption.”
Congress yet to respond in detail
While the Congress has not issued a detailed rebuttal at the time of writing, political analysts indicated that the Congress would say the ED raid was politically motivated. Even during many raids on party leaders, the Congress Party shielded them, claiming a political motive.
Legal experts note that an ED raid under the PMLA is based on financial trails and requires corroborative evidence of money laundering. The outcome of the investigation will depend on whether the agency can establish a clear link between the alleged cybercrimes and the financial transactions under scrutiny.
