Karnataka government orders reinvestigation into Bitcoin scam, SIT formed

Bengaluru: The Congress government on Monday issued an order directing reinvestigation into the Bitcoin scam allegedly involving top BJP leaders in Karnataka.

A Special Investigation Team (SIT) under the Criminal Investigation Department (CID) is being formed to take up the probe. Home Minister Dr. G. Parameshwara stated on Monday that, "we had discussed about lakhs of crores being siphoned off during the previous BJP government."

"Now, we have ordered a reinvestigation. A SIT is being formed under the CID. It can't be said how much time is required to complete the investigation into the scandal.

"The scandal involves technical, interstate and international matters," he said.

Sources said that the Bitcoin scandal had taken place after the arrest of alleged international hacker Srikanth aka Sriki by the CCB police in Bengaluru. It was alleged that using the accused hacker, the ruling BJP leaders had minted huge amounts of money by allowing him to commit the scam while in custody in 2020.

The police had arrested the accused while allegedly selling drugs. The probe revealed that the accused had siphoned off Rs 11 crore by hacking into online gaming companies and government web portals. He had allegedly converted the money into bitcoins and carried out drug peddling in Bengaluru.

Congress Karnataka in-charge Randeep Singh Surjewala earlier, in a series of tweets had attacked the BJP central leadership as well as former Chief Minister Basavaraj Bommai over the bitcoin scandal.

What is the role and responsibility of Basavaraj Bommai? (who was the home minister at that time) and others in the state government? Surjewala had questioned, causing severe embarrassment to the BJP.

"The layers of the Bitcoin scam are finally being unearthed. Let India's Home minister and Chief Minister Bommai answer. FBI in India to investigate India's biggest Bitcoins scam cover up under the Karnataka BJP government. If so, release details of the investigation and suspects including political people,” he had stated.

How many Bitcoins were stolen? and of what value? Who in Karnataka is involved? Were the stolen Bitcoins transferred from the wallet of the arranged hacker Sri Krishna? Surjewala questioned.

Whether the "Whale Alerts" reflecting the transfer of the 14,682 stolen Bitfinex Bitcoins valued at Rs 5,240 crores on the two dates December 1, 2020 and 14 April, 2021 when Sri Krishna was in custody has any correlation? Surjewala said.

He asked why was Interpol not informed? Why did the BJP government wait for over 5 months till 24 April 2021 to write to Interpol and that also after the release of Sri Krishna on 17 April 2021.

He also questioned why the National Investigation Agency (NIA), Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED) not informed by the Karnataka BJP government?

Minister for RDPR, IT and BT Priyanka Kharge stated, "I believe the FBI is in Delhi to investigate the billion dollar Bitcoins scam. LIke I said before, if the state investigates the matter, a lot of BJP's skeletons will tumble out of the layers of Bitcoins scam.

Bommai had later challenged AICC General Secretary Randeep Surjewala to submit any information regarding the scandal. "From my side, I have given a reply to the issue in the Legislative Assembly itself, if he (Randeep Surjewala) has any information on the issue let him submit. Instead tweeting is meaningless," he said.