A former police inspector from India has been apprehended for embezzling Bitcoin worth INR 1.8 crores, equivalent to $216,000, in connection to a cryptocurrency scam inquiry. As per a report from the area, Chandrahar SR, who previously worked with the Central Crime Branch (CCB), illicitly gained access to a hacker’s Bitcoin wallet, which was crucial evidence in an ongoing case. The investigation into the crypto scam traces back to 2017, where Srikrishna Ramesh and his partner Robin Khandelwal orchestrated the fraudulent scheme. The duo managed to breach cryptocurrency exchanges like Bitfinex, Unocoin, and other online platforms, amassing around INR 5.5 crores ($660,000) through their illicit activities. Ramesh attempted to launder the stolen funds with Bitcoin through Khandelwal but was eventually apprehended in 2020.
Initially, the Crime Branch reported that the Bitcoins could not be retrieved, leading to a Special Investigation Team (SIT) being assigned to the case. Investigators accused Ramesh of tampering with the Bitcoin core application to deceive the inquiry. Chandrahar, who was part of the investigative team, is now being accused of infiltrating the hacker’s wallet and stealing Bitcoin. The SIT alleges that he detained Khandelwal and forced him to transfer the funds, subsequently erasing all traces of the transactions. In accordance with the allegations outlined in the FIR filed by the SIT, Chandrahar, along with two other CCB officers, colluded with Santosh Kumar, a private cyber expert, to access the wallet. The accused parties 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 been charged with illegal detention, breach of trust as public servants, and destruction of evidence linked to the Bitcoin scam. Evading law enforcement after being summoned for questioning, Chandrahar was apprehended by the SIT at his residence in North Bengaluru. Alongside Chandrahar, two other unnamed police officers have also been arrested in connection with the cryptocurrency scam investigation. The surge in fraudulent activities in India has prompted regulatory authorities to intensify their supervision of the country’s crypto sector. In a related development, India’s Enforcement Directorate (ED) has taken action against 299 entities in a cryptocurrency scam crackdown.