K’taka: ED-SIT prepares third notice to Congress leader in Bitcoin scam case

Bengaluru, June 9 (SocialNews.XYZ) The Special Investigation Team (SIT) led by the Enforcement Directorate (ED) is preparing to issue a third notice to Youth Congress leader Mohammed Nalapad, son of four-time MLA and Bengaluru Development Authority Chairman N.A. Harris, in connection with alleged financial transactions linked to the case.

According to revelations by SIT investigations, crores of rupees were allegedly routed through transactions linked to Nalapad in connection with the illegal conversion of Bitcoins into Indian currency.

The case is linked to alleged international hacker Srikrishna alias Sriki, who is accused of illegally acquiring Bitcoins and attempting to convert them into cash through illegal channels.

Recently, ED officials conducted coordinated raids at the residences of Congress MLA N.A. Harris in Shantinagar, Bengaluru, and his son, Mohammed Nalapad, during which digital evidence was seized.

The ED has already arrested and questioned Sriki, Suneesh Hegde, and Robin Khandelwal in connection with the case. Officials are examining their statements as part of the ongoing investigation into the alleged laundering of proceeds from cryptocurrency-related offences.

Following the raids, ED officials had issued two summons to Mohammed Nalapad for questioning. However, as per officials, he has not fully cooperated with the investigation. Based on the SIT charge sheet findings, authorities are now preparing to issue a third summons to Nalapad.

The SIT has alleged that Sriki approached Mohammed Nalapad to help convert the Bitcoins into Indian rupees.

It is further alleged that Nalapad, through his Mumbai-based associates and Robin Khandelwal, facilitated the conversion of the cryptocurrency into cash through hawala networks.

Investigators have claimed that substantial commissions from these transactions were received by Nalapad, and the ED is preparing to include these findings in the charge sheet and initiate action, sources stated.

The ED found out the larger involvement after finding a suspicious transaction of Rs 10 lakh into Nalapad’s account, which they say initially helped expose the wider alleged network involved in the case.

Investigators suspect that Nalapad maintained regular contact with Sriki and allegedly facilitated his activities by arranging accommodation for him in luxury hotels. These allegations are currently under scrutiny as part of the agency’s ongoing money laundering investigation.

Nalapad had skipped the first ED summons, citing political engagements. However, sources indicate that if investigators establish concrete evidence of financial transactions between Nalapad and Sriki, the agency may consider taking further legal action, including possible custodial interrogation.

It can be noted that the Karnataka Bitcoin scam is a high-profile cryptocurrency-related case that came to light in 2021, centring on hacker and alleged cybercriminal Srikrishna Ramesh, popularly known as “Sriki”.

The case became politically controversial after allegations surfaced that influential individuals, including politicians, businessmen, and their associates, had links with Sriki. Several names were mentioned during the course of investigations.

The case later expanded to include investigations into alleged proceeds of cybercrime, cryptocurrency transactions, and money laundering, drawing the attention of multiple law enforcement agencies, including the Enforcement Directorate (ED). It remains one of Karnataka’s most closely watched financial crime investigations due to its alleged links to influential individuals and the political controversy surrounding it.

Source: IANS