An ongoing investigation by a Special Investigation Team (SIT) has brought to light concerning revelations implicating several officers from the Indian Crime Branch, including an Inspector General of Police (IGP), in a Bitcoin scam of significant magnitude.

The SIT has issued a notice to Inspector General of Police (IGP) Sandeep Patil, former head of the Crime Branch, to address inconsistencies in the investigation related to a Bitcoin scam that unfolded in connection with hacker Srikrishna Ramesh, alias Sriki, and his associate Robin Khandelwal.

Sriki, the alleged mastermind behind the scam, reportedly orchestrated the hack of cryptocurrency exchange Unocoin in 2017, pilfering 60.6 Bitcoins valued at ₹1.14 crore at the time. Subsequently, he purportedly engaged in further cyber intrusions across various online platforms, laundering the ill-gotten gains through cryptocurrency channels.

The scam's narrative extends to the trading of 150 Bitcoins worth ₹5.5 crore, facilitated by Khandelwal. Both individuals initially faced charges in 2020 related to drug procurement via Bitcoin transactions.

In a recent development, a first information report (FIR) filed by the SIT in January has implicated four former Crime Branch officers and a private cyber expert for a litany of offenses including illegal confinement, breach of public trust, and tampering with evidence pertinent to the Bitcoin scam.

The FIR alleges that these officers manipulated the course of the investigation to obfuscate the misappropriation of Bitcoins seized during the probe. Notably, initial reports suggested the recovery of 31 Bitcoins valued at 9 crores from Sriki and 0.08627702 BTC from Khandelwal. However, subsequent scrutiny revealed these Bitcoins to be untraceable, with authorities citing manipulation of the Bitcoin core application by Sriki as a complicating factor.

Further revelations from the SIT's investigation implicate Inspector Chandradhar in coercive tactics, including the alleged compulsion of Khandelwal to transfer funds to the crypto exchange Wazirx for Bitcoin purchases. This action was purportedly undertaken to offset the unrecovered Bitcoins attributed to Khandelwal.

Moreover, the SIT has widened its probe to scrutinize the involvement of Rishab, the son of an Additional Director General of Police (ADGP), alleging his complicity in utilizing illicitly obtained Bitcoin proceeds. Investigators claim Rishab received a ₹40 lakh cheque during the period of Sriki's illicit activities, which he purportedly used to acquire a vehicle.

These revelations emerge against the backdrop of a growing trend of cryptocurrency-related scams in India. Recent crackdowns by the Enforcement Directorate, including seizures exceeding $30 million, underscore the urgency of addressing such fraudulent activities within the burgeoning digital asset landscape.