 "Bitcoin, cryptocurrency")
Notorious hacker Srikrishna Ramesh (Sriki), accused of stealing a large quantity of the Bitcoin cryptocurrency in 2017, has been arrested in connection with the hacking of a Tumakuru-based cryptocurrency exchange website, police said on Tuesday.
Sriki was arrested late on Monday night. He is accused of stealing Bitcoin worth Rs one crore in 2017.
Type of fraud: Bitcoin scam
Amount: Rs 1.14 crore
Perpetrators: Srikrishna Ramesh, 29, alias Sriki
Background of the accused
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Srikrishna Ramesh, 29, known by various online aliases such as AP, Rose, and Big Boss, was a software programmer with considerable technical skills developed during his school days. These skills reportedly enabled him to engage in various cybercrimes over the years. After studying computer science in Amsterdam, he returned to India where his criminal activities escalated, including hacking into Indian poker and online gaming websites.
Unravelling of the scam
Srikrishna Ramesh was first arrested in 2020 in a drug case by the Central Crime Branch (CCB). He was suspected to be procuring drugs through the DarkNet.
Between 2020-2021, Sriki allegedly moved Bitcoins worth Rs 10 crore to different wallets using a laptop that was smuggled into the prison, unleashing the Bitcoin scam. A constable was allegedly bribed to bring the laptop inside, at the behest of some influential persons, to move the Bitcoins and further launder money, The Hindu reported.
This incident led to increased scrutiny and eventually to the revelation of his involvement in the hacking of Unocoin Technologies Private Limited. Here, it is alleged that Sriki and possibly others stole 60.6 Bitcoins. The hack was reported on June 23, 2017, leading to an FIR lodged by Harish B V, a director of the cryptocurrency exchange.
At the time of the crime, 1 BTC was valued at Rs 1,67,481, and the value of the stolen coins stood at Rs 1.14 crore.
Investigation of the Bitcoin scam
The Bitcoin scam from the tenure of the BJP in Karnataka involves allegations of police grabbing a large cache of the cryptocurrency that was found in the crypto wallets of Sriki in 2020. The services of the Unocoin founders were used extensively in the Crime Branch investigations to recover Bitcoin found in Sriki’s possession according to court filings by the Crime Branch and the SIT.
Four former Central Crime Branch (CCB) officials were earlier named as accused in the case for attempting to hack various cryptocurrency wallets, payment gateways, and stock exchange websites with the help of Sriki.
The Congress government constituted the SIT on June 30, 2023, soon after it came to power in May 2023.
Action taken
Sriki was arrested from a hotel in Ganganagar where he had been residing for a few days. Sriki is also accused in several other cases, including cheating and hacking an e-procurement website.
Bitcoin scams in India
India has been tussling with a rise in cyber crimes in the country for quite some time now. Last month, the Enforcement Directorate seized assets worth Rs 98 crore (about $12.25 million) from Raj Kundra, husband of Shilpa Shetty, as part of a broader investigation into a Bitcoin-related money laundering case. This follows the January arrest of Nikhil Mahajan, a Delhi-based event manager, in connection with the same Rs 6,600 crore Bitcoin Ponzi scheme.
The inquiry originates from 2017 when Amit Bhardwaj, Ajay Bhardwaj, and Mahender Bhardwaj launched the Gain Bitcoin Ponzi scheme through Variable Tech Pte Ltd, enticing investors with high returns from Bitcoin mining. Promising 10% monthly returns initially, the scheme eventually faltered.
Mahajan is accused of receiving 40 bitcoins, worth approximately Rs 35 lakh each, from the Bhardwaj brothers for promoting their scheme by organising events in Dubai and securing celebrity attendance. Following investor complaints, multiple FIRs were registered by Maharashtra and Delhi Police between 2018 and 2019. The ED also alleges that Kundra received 285 Bitcoins from Amit Bhardwaj to set up a Bitcoin mining operation in Ukraine.
Himachal Pradesh crypto scam
In Himachal Pradesh, a cryptocurrency fraud involving Rs 2,500 crore impacted approximately 5,000 individuals, including government employees and those compensated for their land. The scam, centred around a bogus cryptocurrency named 'Korvio Coin', was orchestrated by local natives Subhash Sharma, Sukhdev Thakur, Hemraj Thakur, and others.
Over a thousand police personnel were involved in the scheme. While many lost substantial sums, a few profited by expanding the network of investors. Some of these officers even took early retirement to become full-time promoters of the fraudulent scheme.
Gurugram crypto scam
An executive of a Gurugram-based consulting firm was defrauded of about Rs 38 lakh by a woman who befriended him through a matrimonial site.
The victim was lured into investing in a cryptocurrency named deuncoin and was asked for various other charges, the police said.
With agency inputs
