The newly elected Congress-ruled government in Karnataka has announced its plans to launch an investigation into a Bitcoin scam that has plagued the state. Minister Priyank Kharge has pledged to prioritize the Bitcoin probe as the government’s sixth guarantee to the people.

To conduct the investigation, the government will seek the assistance of cybercrime experts. The objective is to delve deep into the case and uncover the involvement of prominent individuals associated with the scam, according to Kharge’s statement to ET.

The investigation stems from the arrest of Srikrishna Ramesh, also known as Sriki, by the Bengaluru Central Crime Branch (CCB) in November 2020. Sriki, a drug peddler and hacker, allegedly used Bitcoin to purchase drugs on the darknet and distributed them to influential politicians and businesspeople.

Sriki is also linked to various crypto-related cybercrimes, including ransomware attacks and money laundering. He is accused of hacking the Karnataka government’s e-procurement portal and embezzling INR 11.55 crore. Sriki admitted to carrying out an attack on the Bitfinex cryptocurrency exchange and claimed to have stolen 2,000 Bitcoins.

The CCB claimed to have recovered 31 Bitcoins valued at INR 9 crore from Srikrishna initially, but later retracted this claim. Kharge, as the former opposition leader, had previously urged the government to disclose the origin of the seized Bitcoins.

India has witnessed a surge in crypto-related frauds, but investigations into these scams have often yielded limited results. Various high-profile cases, such as the GainBitcoin scam led by Amit Bhardwaj and the Bitconnect fraud, have brought attention to the need for stricter regulation in the crypto ecosystem.

While India is yet to implement comprehensive crypto regulations, the government introduced taxes on crypto transactions in 2021. These include a 30% tax on income from crypto transactions and a 1% TDS (Tax Deducted at Source) on such transactions.

Minister of State for Finance Pankaj Chaudhary stated that India’s crypto policy will be finalized after collaboration with international stakeholders and thorough risk evaluation. Economic Affairs Secretary Ajay Seth also revealed that India is working with the Financial Stability Board (FSB) to reach a consensus on regulating cryptocurrencies during the country’s G20 presidency.

The newly elected Congress-ruled government in Karnataka has announced its plans to launch an investigation into a Bitcoin scam that has plagued the state. Minister Priyank Kharge has pledged to prioritize the Bitcoin probe as the government’s sixth guarantee to the people.

To conduct the investigation, the government will seek the assistance of cybercrime experts. The objective is to delve deep into the case and uncover the involvement of prominent individuals associated with the scam, according to Kharge’s statement to ET.

The investigation stems from the arrest of Srikrishna Ramesh, also known as Sriki, by the Bengaluru Central Crime Branch (CCB) in November 2020. Sriki, a drug peddler and hacker, allegedly used Bitcoin to purchase drugs on the darknet and distributed them to influential politicians and businesspeople.

Sriki is also linked to various crypto-related cybercrimes, including ransomware attacks and money laundering. He is accused of hacking the Karnataka government’s e-procurement portal and embezzling INR 11.55 crore. Sriki admitted to carrying out an attack on the Bitfinex cryptocurrency exchange and claimed to have stolen 2,000 Bitcoins.

The CCB claimed to have recovered 31 Bitcoins valued at INR 9 crore from Srikrishna initially, but later retracted this claim. Kharge, as the former opposition leader, had previously urged the government to disclose the origin of the seized Bitcoins.

India has witnessed a surge in crypto-related frauds, but investigations into these scams have often yielded limited results. Various high-profile cases, such as the GainBitcoin scam led by Amit Bhardwaj and the Bitconnect fraud, have brought attention to the need for stricter regulation in the crypto ecosystem.

While India is yet to implement comprehensive crypto regulations, the government introduced taxes on crypto transactions in 2021. These include a 30% tax on income from crypto transactions and a 1% TDS (Tax Deducted at Source) on such transactions.

Minister of State for Finance Pankaj Chaudhary stated that India’s crypto policy will be finalized after collaboration with international stakeholders and thorough risk evaluation. Economic Affairs Secretary Ajay Seth also revealed that India is working with the Financial Stability Board (FSB) to reach a consensus on regulating cryptocurrencies during the country’s G20 presidency.