Karnataka govt forms SIT to probe Bitcoin scam that surfaced during BJP regime

Bengaluru: Karnataka Home Minister G Parameshwara on Monday said a Special Investigation Team (SIT) under the Criminal Investigation Department (CID) has been formed to reinvestigate the Bitcoin scam.

The Bitcoin scam had surfaced during the previous BJP regime in 2021 and the Congress, which was then in Opposition, had accused the government of trying to cover up the scandal as it involves big names.

The prime suspect, Srikrishna Ramesh alias Sriki, was accused of hacking the state government's e-procurement website and siphoning over Rs 11.5 crore.

There were also charges of cryptocurrency theft, drug peddling and cyber fraud relating to the case.

The Home Minister said Additional Director General of Police Manish Kharbikar will head the SIT which, he added, can also take the help of technical experts since the matter relates to cyber crime.

Before the Assembly elections in May, the Congress had promised the people of Karnataka that if it comes to power, it would reinvestigate the Bitcoin scam, he told reporters here.

"Accordingly, we have taken a decision to hand it over to a Special Investigation Team. We have constituted the SIT under the Criminal Investigation Department," the Minister said, adding that orders have been issued in this regard.

"We hope that the SIT will do the justice. Manish Kharbikar, an ADGP, has been entrusted with the responsibility. He can also take the help of technical people because this is related to cyber. Anything related to technical aspects...they can also take the help of different sources," he explained.

Regarding any possible assistance of central agencies, Parameshwara said he has advised the SIT to take the help of whoever is required.

"If there is a separate order required to that effect, we will definitely do so. It depends. When they (SIT) start the investigations, then we will come to know about their requirements," the Minister pointed out.

The government took the decision keeping all the aspects into consideration, Parameshwara said. "It (the investigation) should not be some sort of a repeat. We want to investigate this more seriously. Lots of lapses have happened. Those things (have) to be covered by the SIT".

On the possibility of forming two special courts to prosecute the Bitcoin cases, he said the investigation should begin first and the government would do whatever is required as far as probe and legal aspects are concerned as the case proceeds.