As the Special Investigation Team (SIT) of the Criminal Investigation Department (CID) probing the bitcoin scam arrested two persons, including a Police Inspector (PI), and booked three other inspectors who served in the City Crime Branch (CCB), the FIR revealed that the SIT has found irregularities in the investigation done by police officers on two cases filed in 2020 — one in K.G. Nagar police station and another in Cottonpet station.
In the first case filed at K.G. Nagar, a person identified as Sujay was arrested for procuring drugs through the darknet. During the investigation, it was found that the payment was made using bitcoins. This led to the arrest of Sriki. Later, the CCB sleuths discovered that Sriki was an international hacker who hacked bitcoin trading exchange, Bitfinex and filed another case at Cottonpet.
The FIR said the then CCB inspector (narcotics) Shridhar Pujar who was probing the drug case kept Sriki (accused number 10 in the case) in illegal custody for three days between November 14, 2020, and November 17, 2020, at a guest house in Central Armed Reserve (CAR) headquarters in Mysuru Road. The FIR also alleged that accused Pujar, who is currently serving as Dy. SP also kept Sriki’s associate Robin Khandelwal (accused number 12 in the case) in illegal custody for four days in the same place between November 14, 2020, and November 18, 2020.
The FIR further alleged that several illegalities were committed by police inspectors in two more cases filed in 2020 in Ashoknagar and Bengaluru city cybercrime police station. In Ashoknagar police station, Sriki, Robin and Ajit Khandelwal were booked for cheating a person identified as Yashoda Devi, 50. The trio had asked Ms. Devi to invest ₹28 lakh in bitcoin trade for which they promised returns to the tune of ₹45 lakh. The accused after receiving the cash went incommunicado and did not return the sum. In another case filed in cybercrime station, the police booked Sriki for stealing data from gaming sites — Casino 143 and Pokersaint. The gaming sites were owned by Pacific Gaming Private Limited.
It is said that the investigation officers in these cases took Sriki and Khandelwal unofficially to GCID Technologies Private Limited for illegal means between December 2020 and January 2021. The officers allegedly involved accused Kumar in the investigation who later stole a fraction of bitcoin. He did transactions on December 30, 31, 2020, and January 6, 2021.
In the Cottonpet hacking case, the FIR alleged that then CCB inspector Lakshmikanthaiah made unauthorised use of a mobile phone of Khandelwal on December 30, 2020, and destroyed pieces of evidence. The accused Babu made unauthorised purchase of a laptop paying ₹60,000 from his pocket. The FIR said Babu, Kumar, and probing officers gave this laptop to Sriki and made him hack some websites. This was found during the technical analysis by the SIT. Kumar remotely operated the laptop and accessed the Amazon server of Sriki after which history and evidence were erased. On January 22, 2021, the police gave internet access to Sriki due to which he mailed a friend when he was in custody.
