The Special Investigation Team (SIT) probing Karnataka’s Bitcoin scam has named Congress leader Mohammed Haris Nalapad, son of Congress MLA N.A. Haris, in its chargesheet, states that he was among the beneficiaries of Bitcoins stolen by hacker Srikrishna Ramesh, popularly known as Sriki. With this, Nalapad has become the first politically connected person to be named in the case.
The chargesheet, submitted before a Bengaluru court on May 20, states that Sriki had approached Nalapad for help in converting Bitcoins obtained through hacking activities into Indian currency. Investigators say Nalapad helped facilitate the conversion with the assistance of associates in Mumbai and a network linked to Robin Khandewala. According to the probe, the cryptocurrency was converted into cash through hawala channels.
Stolen Bitcoins worth over Rs 35 crore today
The case revolves around the theft of 60.6 Bitcoins from Tumakuru-based cryptocurrency exchange Unocoin in 2017. At the time of the theft, the digital assets were worth around Rs 1.14 crore. Due to the sharp rise in Bitcoin prices over the years, the value of the stolen cryptocurrency has now crossed Rs 35 crore.
The SIT chargesheet names Sriki, Mohammed Nalapad and Sriki’s accountant Robin Khandewala. While investigators are still examining Nalapad’s exact role, they claim he played a key part in helping convert the stolen cryptocurrency into cash.
ED is conducting a parallel money laundering probe
The Enforcement Directorate (ED), which is investigating the money laundering angle of the case, has also identified Mohammed Nalapad, his brother Omar Farook Nalapad and Aqeeb Khan, grandson of former Union minister K. Rahman Khan, as beneficiaries of the proceeds generated from the crime.
As part of its investigation, the ED recently conducted searches at the residences of N.A. Haris and Mohammed Nalapad in Bengaluru. During the raids, officials reportedly seized mobile phones, electronic devices and documents connected to the case.
Sources said the ED has obtained copies of the SIT chargesheet and is examining its findings as part of its ongoing probe into the movement of funds linked to the Bitcoin transactions.
Arrests and summons
The central agency has already arrested Sriki, Sunish Hegde and Robin Khandewala in connection with the case. Last month, the three were remanded to judicial custody after their arrests by the ED.
According to sources, Mohammed Nalapad has not appeared before the ED despite being summoned twice. The agency has now issued a third summons and is awaiting his appearance. Officials indicated that further legal action may follow if he does not respond to the latest notice.
How the scam came to light
The Bitcoin scam gained attention after Sriki’s arrest in November 2020 in a case involving the purchase of hydro ganja on the dark web using Bitcoins. During the investigation, authorities found that he had hacked several online poker platforms, cryptocurrency exchanges and other websites.
Further inquiries also linked him to the hacking of Karnataka’s e-procurement portal in 2019, from which Rs 11.5 crore was siphoned off.
To investigate the larger network and financial trail, the Congress government constituted a Special Investigation Team in 2023. The Nalapad brothers were questioned by the SIT in June 2024 and again in February 2025. On April 20 this year, the ED carried out coordinated searches involving Sriki, Aqeeb Khan and the Nalapad brothers.
Nalapad rejects charges
Reacting to the development, Mohammed Nalapad said he had not received a copy of the chargesheet and dismissed the accusations against him.
Calling the case a politically motivated campaign, Nalapad said the allegations were being used to damage both his reputation and his father’s political prospects. He expressed confidence that N.A. Haris would soon be inducted as a minister despite the controversy surrounding the investigation.
