A former police inspector from India's Central Crime Branch (CCB), Chandrahar SR, has been apprehended for allegedly misappropriating INR 1.8 crores worth of Bitcoin, approximately $216,000, associated with an ongoing investigation into a cryptocurrency scam.

According to local reports, Chandrahar SR unlawfully accessed the Bitcoin wallet of a hacker, which served as crucial evidence in the probe into the crypto scam. This scam, dating back to 2017, was orchestrated by Srikrishna Ramesh and his accomplice Robin Khandelwal, who illicitly gained funds by hacking into cryptocurrency exchanges like Bitfinex and Unocoin, among others.

Despite Ramesh's attempt to launder the stolen funds through Khandelwal using Bitcoin, both individuals were eventually apprehended in 2020. However, the investigation faced hurdles when it was reported that the Bitcoins could not be retrieved, prompting the involvement of a Special Investigation Team (SIT).

The SIT uncovered evidence suggesting that Chandrahar, along with two other CCB officers and a private cyber expert named Santosh Kumar, colluded to access the hacker's wallet and pilfer the Bitcoin. Allegedly, Chandrahar coerced Khandelwal into transferring the funds while obliterating all traces of the illicit transactions.

As detailed in the First Information Report (FIR) filed by the SIT, Chandrahar and his accomplices accessed the Bitcoin wallet at Kumar's office in Bengaluru between December 30, 2020, and January 6, 2021. Subsequently, Chandrahar, Kumar, and the other officers face charges of illegal confinement, breach of trust by a public servant, and destruction of evidence related to the Bitcoin scam.

Despite evading law enforcement for some time, Chandrahar was apprehended by the SIT from his residence in North Bengaluru. Furthermore, two other unnamed police officers have also been arrested in connection with the ongoing investigation into the Bitcoin scam.

The incident underscores the growing concern over scams and frauds in India's crypto sector, prompting regulators to intensify oversight measures to safeguard investors and maintain the integrity of the cryptocurrency ecosystem.