Indian Police Officer Arrested in Bitcoin Scam

An Indian police officer has been apprehended for embezzling Bitcoin worth approximately $216,000 (INR 1.8 crores) linked to a cryptocurrency fraud inquiry.

As per a local report, Chandrahar SR, a former inspector from the Central Crime Branch (CCB), illicitly gained entry to a hacker's Bitcoin wallet, which was crucial evidence in an ongoing probe.

The cryptocurrency scheme under scrutiny dates back to 2017. Srikrishna Ramesh and Robin Khandelwal orchestrated the fraudulent operation by breaching cryptocurrency exchanges such as Bitfinex and Unocoin, accruing around $660,000 (INR 5.5 crore) through their illicit activities.

Ramesh aimed to launder the pilfered funds utilizing Bitcoin via Khandelwal but was apprehended in 2020. The initial failure to recover the Bitcoins led to a Special Investigation Team (SIT) probe. Investigators alleged Ramesh manipulated the Bitcoin core application to deceive the inquiry.

Chandrahar, implicated as one of the officers from the crime branch involved in the case, faces accusations of unauthorized access to the hacker's wallet and Bitcoin theft. The SIT asserts he detained Khandelwal and coerced fund transfers, subsequently obliterating all related evidence.

According to the SIT's First Information Report (FIR), Chandrahar, in collusion with two other CCB officers, collaborated with Santosh Kumar, a private cyber expert, to infiltrate the implicated wallet at Kumar's Bengaluru office. The complicit parties faced charges of unlawful detention, breach of public trust, and destruction of pertinent evidence.

Keeping away from law enforcement, Chandrahar was recently arrested from his residence in North Bengaluru following evasion upon the summons for interrogation. Additionally, two unidentified police officers have been apprehended concerning the Bitcoin fraud inquiry.

India has witnessed increased fraudulent activities, prompting regulatory authorities to intensify oversight over the nation's cryptocurrency domain.