Indian police officer apprehended for embezzling more than $200K worth of Bitcoin linked to an ongoing investigation into a fraudulent scheme

An Indian police officer has been apprehended for embezzling Bitcoin worth INR 1.8 crores, equivalent to approximately $216,000, in connection with an investigation into a cryptocurrency scam. According to a local report, Chandrahar SR, a former police inspector from the Central Crime Branch (CCB), illicitly gained access to a hacker’s Bitcoin wallet, which served as evidence in an ongoing inquiry. The investigation into the crypto scam dates back to 2017 and involves Srikrishna Ramesh and his accomplice Robin Khandelwal, who orchestrated the fraudulent scheme. The duo hacked various cryptocurrency exchanges, including Bitfinex and Unocoin, and other online platforms, amassing around INR 5.5 crores ($660,000) in illicit funds. Ramesh attempted to launder the stolen money using Bitcoin through Khandelwal but was eventually apprehended in 2020. Initially, the Crime Branch was unable to recover the stolen Bitcoins, prompting a Special Investigation Team (SIT) to launch a probe. Investigators accused Ramesh of manipulating the Bitcoin core application to deceive the investigation. Chandrahar, who was involved in the investigation as a crime branch officer, is now accused of accessing the hacker’s wallet and stealing Bitcoin. The SIT alleges that he detained Khandelwal and coerced him into transferring the funds. Furthermore, Chandrahar destroyed all evidence related to the transactions. As stated in the FIR filed by the SIT, Chandrahar, along with two other CCB officers, colluded with Santosh Kumar, a private cyber expert, to gain access to the wallet. The accused accessed the Bitcoin wallet at Kumar’s Bengaluru office between December 30, 2020, and January 6, 2021. Chandrahar, Kumar, and the other officers have been charged with illegal confinement, breach of trust by a public servant, and destruction of evidence linked to the Bitcoin scam. Chandrahar had been evading law enforcement since being summoned for questioning but was arrested by the SIT at his residence in North Bengaluru. Two other unnamed police officers have also been arrested in connection with the Bitcoin scam investigation. The rise in scams and frauds has led Indian regulators to tighten their oversight of the country’s cryptocurrency sector.