Bitcoin Scam in India: Police Officers under Investigators’ Scrutiny – What Happened?


Bitcoin Scandal in India: Crimes Officers Under Investigators’ Scrutiny

India is shaken by another scandal related to cryptocurrencies, with the epicenter being the 2017 hack of the cryptocurrency exchange Unocoin. As a result of an investigation conducted by the Special Investigative Team (SIT), several high-ranking officers of the Crime Branch, including the Inspector General of Police (IGP), have come under criticism.

Tough Questions for the Inspector General of Police

The Special Investigative Team, handling the inquiry into the Bitcoin scandal, has issued a notification to Inspector General of Police Sandeep Patil, who heads the Crime Branch. The purpose of the notification is to clarify discrepancies in the investigation concerning the hacker Srikrishna Ramesh, known as Sriki, who stole 60.6 Bitcoins worth 1.14 crore rupees (approximately 137,000 USD) from Unocoin exchange.

Accusations and Arrests

The Bitcoin scandal has implicated several other individuals. Sriki, in exchange for 150 Bitcoins worth 5.5 crore, involved Khandelwal, leading to the arrest of both in 2020. Charges include ordering drugs online using Bitcoin.

Four former Crime Branch officers, along with a private cyber expert, are being prosecuted for illegal possession, breach of trust by a public servant, and destruction of evidence related to the Bitcoin scandal.

Involvement of Rishab – Son of Director General of Police

The investigation also involves Rishab, the son of the Director General of Police (ADGP), suspected of involvement in illicit transactions derived from Bitcoin trading. Rishab faces allegations of violating the law.

Increase in Cryptocurrency Frauds in India

India has witnessed a surge in cryptocurrency-related crimes. Recent actions by the Central Bureau of Investigation led to the dismantling of two major cryptocurrency scams, resulting in the seizure of over 30 million dollars.

The entire issue of Bitcoin scandals in India remains a dynamic and escalating problem that authorities must find effective solutions for.