SIT Probe Reveals Hawala Links in Rs. 35 Cr Bitcoin Scam as Nalapad Named in 2017 Crypto Theft Case
A new development in the Bitcoin scam case in Karnataka has grabbed everyone’s attention, especially in the state’s political fraternity. The SIT charge sheet has mentioned Mohammed Nalapad, the son of Congress MLA N A Haris and a known political figure, in the crypto fraud case.
This is the first time a politically linked person has been formally named in the Bitcoin scam charge sheet.
SIT Names Mohammed Nalapad in Charge Sheet
The Special Investigation Team filed the charge sheet in a Bengaluru court on May 20. The report links Nalapad to alleged gains from stolen Bitcoin assets.
Investigators say hacker Srikrishna, alias Sriki, stole 60.6 Bitcoins in 2017 from a crypto exchange in Tumakuru. At the time, the amount stolen was worth around Rs. 1.14 crore.
The same Bitcoins are now valued at more than Rs. 35 crore. The sharp rise in value has increased the importance of the case.
Allegations of Bitcoin Conversion and Hawala Transfers
The SIT charge sheet claims Nalapad benefited from the stolen Bitcoins as he played an important role in converting the digital currency into cash.
Officials believe the money was moved through hawala channels to hide the movement of funds outside the banking system.
The exact role of Nalapad is still under investigation. Authorities have not fully explained how deeply he was involved in the process.
The charge sheet also names Sriki and his accountant, Robin Khandelwal. Both are already under investigation for their roles in the scam.
Earlier findings by the Enforcement Directorate linked Nalapad and his brother to the case. The agency said they were close to Sriki and may have received benefits from stolen funds.
Investigation Expands as Political Scrutiny Grows
The Bitcoin scam first came to light after Sriki was arrested in 2020. His arrest was linked to a separate dark web drug case.
Later investigations revealed his involvement in hacking crypto exchanges and online systems. He was also linked to cyberattacks on government infrastructure in Karnataka.
The SIT was formed in 2023 to re-investigate the case in detail. It focused on tracking stolen cryptocurrency and financial movements.
The latest charge sheet adds a political angle to the case. It has also increased scrutiny on all individuals linked to the investigation.
Nalapad has denied all allegations made against him and said the claims are an attempt to damage his reputation and public image.
He also stated that he has not received an official copy of the charge sheet. Further legal steps are expected as the investigation continues.
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