Key Points
- An Indian police officer was arrested for stealing Bitcoin worth about $216,000 from a crypto scam investigation.
- The officer is accused of accessing the Bitcoin wallet of a hacker, destroying evidence, and collaborating with others to commit the crime.
A police officer in India has been taken into custody for allegedly stealing INR 1.8 crores worth of Bitcoin, equivalent to roughly $216,000, during a crypto scam investigation.
Details of the Scam
The officer in question, Chandrahar SR, who formerly worked with the Central Crime Branch (CCB), is said to have unlawfully accessed the Bitcoin wallet of a hacker. This wallet was part of the evidence in an ongoing probe.
The investigation stemmed from a crypto scam that occurred in 2017. Srikrishna Ramesh, a hacker, and his accomplice Robin Khandelwal were the brains behind the fraud. They hacked into cryptocurrency exchanges such as Bitfinex, Unocoin, and other online platforms, amassing approximately INR 5.5 crore ($660,000) through their operations.
Ramesh attempted to launder the stolen funds using Bitcoin through Khandelwal, but he was eventually apprehended in 2020. The Crime Branch initially reported that the Bitcoins could not be retrieved, which led to an investigation by a Special Investigation Team (SIT). The SIT claimed that Ramesh had manipulated “the Bitcoin core application” to thwart the investigation.
Allegations and Arrests
Chandrahar, who was part of the investigating team, is now being accused of accessing the hacker’s wallet and stealing Bitcoin. The SIT also alleges that he took Khandelwal into custody and forced him to transfer the funds. Moreover, it is claimed that Chandrahar destroyed all evidence related to the transactions.
The FIR lodged by the SIT states that Chandrahar, along with two other CCB officers, conspired with Santosh Kumar, a private cyber expert, to access the wallet. They reportedly accessed the Bitcoin wallet at Kumar’s office in Bengaluru between December 30, 2020, and January 6, 2021. Chandrahar, Kumar, and the other officers have all been charged with illegal confinement, breach of trust by a public servant, and destruction of evidence related to the Bitcoin scam.
Chandrahar had been avoiding law enforcement ever since he was summoned for questioning. The SIT arrested him at his residence in North Bengaluru. In addition to Chandrahar, two other unnamed police officers have also been arrested in relation to the Bitcoin scam investigation.
India has witnessed a rise in scams and frauds, leading regulators to increase their oversight of the country’s crypto sector.
