Sriki Bitcoin Scam: Court Flags 3,52,000 USDT Transactions as ED Tightens Money Laundering Probe
A Bengaluru court has brought fresh attention to the Sriki Bitcoin scam after recording findings on a large cryptocurrency laundering network. The order named Srikrishna Ramesh alias Sriki as the prime accused and described an elaborate trail that allegedly converted stolen digital assets into spendable money through multiple accounts and intermediaries.
The findings became public on June 25 after the Principal City Civil and Sessions Court denied regular bail to businessman Sunish Hegde and anticipatory bail to co-accused Prasidh Shetty. The court relied on material presented by the Special Investigation Team and the Enforcement Directorate.
Alleged Bitcoin Theft and Money Trail
According to the order, Sriki allegedly hacked wallets connected to the Tumakuru-based Unocoin crypto exchange in 2017 and stole more than 60 Bitcoins. Investigators estimated the current value of those stolen Bitcoins at around Rs. 33.69 crore.
The court said the cryptocurrency was sold through traders and then routed through several bank accounts. Investigators alleged the proceeds underwent layering to conceal their origin before funding personal expenses. The order named Mohammed Haris Nalapad, Omar Farook Nalapad, Aqeeb Khan, Sunish Hegde and Sujay Raj as alleged beneficiaries of the wider money trail.
The reference to the Nalapad brothers has drawn particular attention because Mohammed Haris Nalapad previously led the Karnataka Pradesh Youth Congress Committee. Investigators claimed bank records showed payments linked to hotels, casinos and other expenditures.
ED Claims and Digital Evidence
Enforcement Directorate lawyers argued that members of the group operated from different secret locations to avoid detection while continuing illegal activities. The agency also alleged that Hegde gave contradictory statements about cryptocurrency transactions.
Investigators said digital evidence recovered from Hegde’s mobile phone revealed substantial crypto wallet activity. They further alleged that transactions through his Binance account totaled about 3,52,000 USDT, valued at roughly Rs. 3.32 crore at current rates.
What the Court Said About the Ongoing Probe
The case highlights growing concerns around cryptocurrency tracing and financial surveillance in India. Investigators alleged that digital assets moved through several conversion layers before reaching personal spending channels. The court’s observations also show how crypto investigations increasingly combine cybercrime, banking records, and money laundering probes under the Prevention of Money Laundering Act.
Prasidh Shetty argued that he lacked technical expertise in hacking or cyber intrusion. The Enforcement Directorate disputed that claim and alleged he maintained a cryptocurrency trading account outside India while conducting substantial virtual digital asset transactions.
While the court denied bail, it also noted that mere appearance before investigators does not amount to complete and truthful cooperation. The order said the probe into tracing, quantifying and layering the proceeds of crime remains ongoing.
Investigators have not yet concluded the wider money laundering inquiry, and no final determination of guilt has been made. The latest court order, however, places the alleged cryptocurrency trail and its reported beneficiaries under sharper legal scrutiny.
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