Chandrahar SR, a previous inspector from the CCB in India, was apprehended under suspicion of stealing $216,000 worth of Bitcoin. This arrest was part of a probe into a cryptocurrency fraud scheme that transpired in 2020 and included breaches into major exchange platforms.

The apprehension of Chandrahar occurred at his residence in North Bengaluru by the Special Investigation Team (SIT), subsequent to his evasion of capture. Despite his prior unsuccessful attempt to secure anticipatory bail, his arrest was executed. The accusation against Chandrahar involves unauthorized entry into a Bitcoin wallet linked to a hacker, which holds significance as evidence in the ongoing investigation.

A hacker named Srikrishna Ramesh, alongside accomplice Robin Khandelwal, exploited vulnerabilities within platforms like Bitfinex and Unocoin, amassing approximately INR 5.5 crore ($660,000) through their illicit activities. Ramesh endeavored to legitimize the illicit gains via Bitcoin transactions facilitated by Khandelwal before their apprehension in 2020.

As per the First Information Report (FIR) filed by the SIT, Chandrahar collaborated with two fellow CCB officers and a private cyber specialist named Santosh Kumar to coerce Khandelwal into transferring the embezzled funds. Subsequently, all traces of these transactions were obliterated within Kumar's workspace between December 30, 2020, and January 6, 2021.

Chandrahar, Kumar, and the two other officers face charges encompassing unlawful detention, breach of trust, and evidence tampering. This episode underscores the persistent hurdles and regulatory surveillance confronting the cryptocurrency landscape in India amidst a surge in fraudulent occurrences.