BENGALURU: The Enforcement Directorate has arrested alleged Bitcoin scam kingpin Srikrishna alias Shreeki and two others, intensifying the Karnataka Bitcoin scam probe. Following the arrests, fresh scrutiny has fallen on Congress leader Mohammed Nalapad over alleged past links and suspicious financial transactions connected to cryptocurrency dealings and hacking-related money laundering activities.
Bengaluru: The sensational Bitcoin scam that rocked Karnataka politics and law enforcement agencies has once again returned to the spotlight after the Enforcement Directorate (ED) arrested the alleged kingpin of the case, Srikrishna alias Shreeki, along with two other accused. The latest development has triggered fresh speculation over whether Congress leader and Shantinagar MLA N.A. Harris’s son, Mohammed Nalapad, could face renewed scrutiny in the case.
The ED on Thursday night arrested Shreeki, Robin Khandeval and Sunish Hegde in connection with the multi-crore cryptocurrency scam and illegal money laundering network.
Following the arrests, investigators are now intensifying efforts to trace financial transactions, cryptocurrency movements and links between the accused and influential individuals allegedly connected to the network.
Focus shifts to Mohammed Nalapad
Sources indicate that the ED is now revisiting the alleged links between Mohammed Nalapad and Shreeki, which had earlier surfaced during the SIT probe into the Bitcoin scam.
Nalapad had previously appeared before the Special Investigation Team (SIT) for questioning after investigators found suspected digital and financial connections between him and the hacker.
The case initially came to light after allegations emerged that Shreeki and his associates had hacked into the Karnataka government’s e-procurement portal and diverted funds through illegal digital channels.
During the probe, investigators reportedly uncovered suspicious cryptocurrency wallets and transactions involving multiple individuals.
According to officials, the ED is now collecting fresh evidence related to alleged money laundering and digital asset transfers. Investigators are also examining whether proceeds generated through hacked Bitcoins were converted into cash and routed through layered transactions to conceal their origin.
Previous ED raids
In April 2024, the ED conducted extensive raids at multiple locations linked to Mohammed Nalapad, his father N.A. Harris and several others. The searches reportedly lasted nearly 15 hours. During the raids, officials examined financial records, digital devices and cryptocurrency-related documents.
Investigators suspect that Shreeki used complex crypto transactions and “layering” techniques to transfer funds through different accounts. Reports had earlier claimed that around Rs 4.5 crore in suspicious transactions were under the scanner.
The alleged friendship between Shreeki and Nalapad had also drawn attention earlier, as Shreeki was reportedly acquainted with Nalapad’s brother Umar Nalapad from their student days. Investigators had previously examined claims that money linked to cryptocurrency transactions was transferred through intermediaries into accounts connected to Nalapad.
ED intensifies investigation
With Shreeki now in ED custody, officials are expected to question him in detail regarding the flow of cryptocurrency assets, hacking operations and financial beneficiaries linked to the scam. Sources say the agency is likely to verify earlier statements, digital evidence and transaction records gathered during previous investigations.
The ED is also probing international crypto links, online wallets and possible foreign transactions connected to the accused. Digital forensic experts are assisting investigators in tracing the movement of funds and identifying additional beneficiaries.
While Mohammed Nalapad has denied wrongdoing in the past, political circles are closely watching the developments, especially after the arrest of the key accused. The latest action by the ED has revived political debate around the Bitcoin case, which had earlier sparked massive controversy in Karnataka.
Political and legal implications
The Bitcoin scam had become one of the most discussed issues in the state, with opposition parties accusing previous investigations of shielding influential individuals. The renewed ED action is now expected to intensify political confrontation once again.
Officials believe Shreeki’s custodial interrogation could reveal crucial details about the alleged hacking network, cryptocurrency transactions and individuals connected to the operation. Whether the investigation will directly impact Mohammed Nalapad remains to be seen, but the ED’s latest moves suggest that the probe is entering a crucial phase.
For now, the arrests have once again pushed the Bitcoin scam back into the centre of Karnataka’s political and legal landscape, with all eyes on the next stage of the investigation.
