The Karnataka Bitcoin scandal has turned into a major political controversy, with the opposition targeting the ruling government over an alleged multi-core scam. The scandal has also involved CM Bommai-led state government, many IPS officers and some high-profile individuals with a 25-year-old hacker at the centre of it all.
Congress is seen accusing BJP government in the state for allegedly covering up the scam, which the opposition alleges involves main leaders and some high-ranking police officials. As the scam gained more ground, it was also brought up during a meeting between Bommai and PM Narendra Modi earlier this month.
If you've missed how the Bitcoin scandal started and just now catching up on all the major updates, here's a quick rundown of major events.
What is the Bitcoin scam?
It all started in 2019, when the main accused Srikrishna Ramesh, allegedly hacked the Karnataka government's e-procurement website and siphoned off more than Rs 11.5 crore. In November 2020, the CCB arrested Sriki, who allegedly used to supply bitcoins to VVIP customers, in connection with drug peddling. During investigations the bitcoin scandal came up. The police had seized 31 bitcoins worth Rs 9 crore later.
But the issue arose when the bitcoins were no longer found with the CCB, which triggered questions about possible corruption in police high ranks. Later, the scandal took a political turn when Congress accused BJP-led government in Karnataka of covering the scam and demanded SIT's intervention monitored by the Supreme Court.
The blame-game, nasty fights
Congress bigwigs vocally criticised the BJP leadership in Karnataka and levelled some serious charges. Ramalinga Reddy, former Home minister and executive committee member of the Congress alleged that the scandal involved as many as Rs 10,000 crore transactions and if the truth was to come out, many BJP leaders would lose their chairs.
CM Bommai has maintained that perpetrators would be brought to justice and no one would be spared, no matter how influential. State Home Minister Araga Jnanendra echoed CM's views and had said that this is a serious case and political leaders should rise above party politics on the issue. There are allegations against the police department and without mercy action will be taken, he added.
Congress decided to make 'Bitcoin Scandal' a poll issue and BJP seems to be determined not to lose the momentum and goodwill that has been created so far. Sources in both the parties confirmed that there will be more bitter fights in the coming days. The high commands of both parties have given a green signal for their party leaders to launch an all out attack on each other.
BJP launched fresh attack on Congress and blamed Opposition leader Siddaramaiaha's late son Rakesh Siddaramaiah for having links with Bitcoin scandal kingpin Sriki. Siddaramaiah burst out on BJP for dragging his dead son's name into the scandal and questioned if BJP leaders lost humanity and lacked dignity.
Siddaramaiah challenged the BJP government to initiate the judicial probe of the scandal including his tenure as well.
Jnanendra recently made sensational charges in an interview to a private Kannada channel that kingpin was used by Congress party to rig youth Congress elections. State Congress President D.K. Shivakumar called Araga Jnanendra a mad person.
At the launch of 'Jan Swaraj' yatra in Koppala district, CM Bommai hit out at Congress for maligning his government. "Congress has been indulging in a slander campaign against us as my 100 days of successful pro-people government has dashed its hopes of coming to power," he said.
"The alleged scam happened during the tenure of their own government. Their own party's national spokesperson has said this citing the case in 2016, 2017 and 2018. Who was in power then? Who released the accused?" Bommai asked Congress.
"Our government arrested the accused in a drug abuse-related case and has registered three cases against him. We have initiated the probe through central investigation agencies. Now you are questioning those who arrested him. What should we do now," the Chief Minister asked.
Who is Sriki?
Sriki is a 25-year-old hacker, who is facing various charges and accused of procuring drugs using bitcoins via darknet and peddling it to his high-profile clients. Investigations have revealed that Sriki was also indulged in ransomware attacks, hacking into bitcoin exchanges, looting cryptocurrency, money laundering and cyber frauds.
The hacker first appeared on police radar in 2015 but got bail soon after he was arrested in connection with a bank account hacking case. His name cropped up again in 2018 pub brawl involving Shantinagar MLA and Congress leader N.A. Haris' son Mohammed Nalapad Haris.
The Bitcoin scandal is a white-collar crime committed using technology. It is said that the passwords are in the memory of the main accused and there are no written documents on this. Congress has alleged that holding such information puts his life at risk as there are influential persons under the spotlight due to him. The opposition demanded police protection for the accused.
Sriki is being investigated by Enforcement Directorate (ED), Cyber Crimes Wing of the Criminal Investigation Department (CID), and Central Crime Branch of Bengaluru Police.
(With additional agency inputs)
