The Bitcoin Scam in Karnataka: Unveiling the Actions of Hacker Srikrishna

 

Bitcoin, the most popular cryptocurrency in the world, has been at the center of a multi-crore scam in Karnataka that has rocked the state’s political landscape. The main accused in the case is a 26-year-old hacker named Srikrishna, alias Shriki, who allegedly hacked several websites and stole bitcoins worth crores of rupees. He also lived a lavish lifestyle, staying at luxury hotels and spending huge amounts on food, drinks and massages.

Who is Srikrishna and what did he do?

Srikrishna is a software engineer who graduated from RV College of Engineering in Bengaluru. He was arrested by the Central Crime Branch (CCB) of the Karnataka police on 17 November 2020 for allegedly hacking the e-procurement website of the Karnataka government in 2019 and siphoning off Rs 11 crore. He was also accused of hacking three bitcoin exchanges, 10 poker websites and four other websites.

According to the CCB, Srikrishna used sophisticated tools and techniques to hack into the websites and steal bitcoins and other cryptocurrencies. He then converted them into Indian rupees using online platforms and transferred them to his bank accounts. He also used some of the money to buy drugs from the dark web.

The CCB filed a chargesheet against Srikrishna in July 2021, which revealed that he had paid over Rs 7 crore as hotel bills between May and July 2019. He had stayed at five-star hotels such as JW Marriott, Taj West End, Shangri-La and Conrad in Bengaluru, where he had expensive meals and also took massages. He also travelled to Goa, Mumbai and Dubai for leisure.

How did the scam come to light?

The scam came to light when the CCB arrested two drug peddlers, Hemanth Mudappa and Sunish Hegde, on 9 November 2020. They had allegedly procured 500 grams of hydro marijuana from the dark web using cryptocurrency. The CCB also arrested Darshan Lamani, the son of former Congress minister Rudrappa Lamani, for allegedly harbouring the accused.

During the investigation, the CCB found that Srikrishna was the source of the cryptocurrency used by the drug peddlers. They also found that he had hacked several websites and stolen bitcoins worth crores of rupees. The CCB then arrested Srikrishna on 17 November 2020 and seized his laptop, hard disks, mobile phones and other gadgets.

What is the political controversy around the scam?

The scam has become a political hot potato in Karnataka, with the opposition Congress accusing the ruling BJP of trying to cover up the involvement of some of its leaders and officials in the scam. The Congress has alleged that Srikrishna had links with BJP MLA Ramesh Jarkiholi, who was caught in a sex CD scandal earlier this year. The Congress has also claimed that Srikrishna had hacked into the income tax department’s website and accessed confidential information about some BJP leaders.

The Congress has demanded a high-level probe by a central agency into the scam and has also sought protection for Srikrishna, saying that his life is under threat as he knows many secrets about the scam. The Congress has also questioned why Srikrishna was granted bail in a separate case of a brawl at a luxury hotel on 6 November 2021.

The BJP, on the other hand, has dismissed the allegations as baseless and politically motivated. Chief Minister Basavaraj Bommai has said that the scam is a “non-issue” that the Congress is trying to rake up for political mileage. He has also said that he discussed the matter with Prime Minister Narendra Modi, who assured him not to bother much about it. Bommai has said that his government has treated the case very seriously and has formed a special investigation team (SIT) to probe it.

What is the status of the investigation?

The CCB has filed two chargesheets against Srikrishna so far, one in July 2021 and another in October 2021. The chargesheets have named 12 accused, including Srikrishna, his associates and some bitcoin exchange operators. The chargesheets have also mentioned that Srikrishna had hacked into more than 100 websites across India and abroad and stolen bitcoins worth over Rs 100 crore.

The SIT, which was formed by the Karnataka government on 3 July 2021, is headed by Additional Director General of Police (ADGP) Soumendu Mukherjee. The SIT is expected to submit its report by the end of this year. The SIT is also looking into the allegations of political involvement and income tax data breach in the scam.

Srikrishna, meanwhile, is currently out on bail in the hotel brawl case. He has denied any wrongdoing and has claimed that he is a victim of a conspiracy. He has also asked the media to “chill” and not to spread rumours about him