Cong demands SC-monitored probe in alleged Bitcoin scam

New Delhi: It appears that the troubles for the Karnataka Chief Minister Basavaraj Bommai have started mounting in the alleged multi-crore Bitcoin scam as the Congress on Saturday demanded a Supreme Court-monitored SIT probe into the whole matter and accused the BJP government in the state for covering up the scam.

Congress general secretary Randeep Surjewala posed a set of six questions to Prime Minister Narendra Modi and asked what was the role of Karnataka Chief Minister Basavaraj Bommai, who was the state's home minister when the scam took place.

He asked why international investigative agencies, including Interpol, were not informed about the stolen Bitcoins.

"India's biggest ever 'Bitcoin Scam' has been unearthed in Karnataka. Instead of conducting a fair investigation, the BJP government of Karnataka appears to be preoccupied with 'Operation Bitcoin Scam Coverup'," Surjewala alleged.

"'This is not a money laundering crime alone, this is an international crime. Considering how shoddily and compromised the investigation has been done, I don't think that the Enforcement Directorate or Karnataka Police can do a fair job. That is why we demand that an SIT (special investigation team) should be set up and monitored by the Supreme Court which should investigate this case and bring out the truth," the Congress leader said.

Surjewala also questioned the silence of Prime Minister Narendra Modi in the case and claimed that the prime minister was told by the FBI about it during his recent visit to the US.

"It is a multi-country investigation and the truth must come out. The government is either colluding or is working shoddily in the investigation.... There are doubts being raised on the reputation of Basavaraj Bommai and his political career and reputation are at stake and that is why he should write to the government for constituting an SIT monitored by the SC to probe this," he said.

Surjewala, along with party spokesperson Gourav Vallabh, alleged that an alleged hacker, Sri Krishna, was arrested along with his associate Robin Khandelwal by the Karnataka Police on November 14 last year and was kept in police custody for over 100 days by repeatedly arresting him in at least five criminal cases registered one after the other. He was released on bail on April 17 this year.

The Congress leader further alleged that Sri Krishna made a voluntary statement before the Metropolitan Magistrate, Bengaluru, sometime in December 2020, wherein he had allegedly given the names of various foreign companies/portals which were hacked by him, and millions of dollars earned illegally.

The Congress leaders also alleged that Sri Krishna was involved in the alleged hacking of Bitcoin/Cryptocurrency exchanges and websites that includes Bitfinex, registered in a noted tax haven, the British Virgin Islands, and reports suggest that it was hacked on August 2, 2016 and 1,20,000 bitcoins were stolen. However, in his voluntary statement, he admits to having taken 2000 Bitcoins.

He said that 'Whale Alert' is a Twitter account that tracks large scale cryptocurrency transactions and it reflects that on December 1, 2020, and on April 14, 2021, Bitcoins from the 2016 hack of Bitfinex Bitcoin exchange were transferred and its value comes out to be USD 704.8 million which is equivalent to Rs 5,240 crore.

"Despite multiple international crimes of significant magnitude, Interpol was not informed for over five months. Only on April 24, 2021, more than five months after the initial arrest, did the Commissioner of Police, Bengaluru wrote to the Interpol Liaison Officer (CBI) asking to inform Interpol and other agencies. Even ED/CBI/SFIO were not informed by Karnataka's BJP government," Surjewala said, adding that Bommai was the state's home minister between August 20, 2019, to July 28, 2021.