In a significant development in an alleged cryptocurrency fraud and cybercrime-linked money laundering investigation, the Enforcement Directorate (ED) on Monday conducted coordinated searches at 12 locations across Bengaluru.
The premises linked to Congress leader N. Haris and his two sons were also covered under the operation, carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to officials familiar with the matter, the raids are part of an ongoing investigation into suspected proceeds of crime generated through cyber hacking activities and subsequently routed through cryptocurrency transactions. The probe is centered around alleged hacker Srikrishna Ramesh, also known as Sriki, who has previously been accused in multiple cyber-related offences, including digital breaches and financial fraud.
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Sriki-Linked Probe
Sources indicated that the ED is examining whether funds allegedly generated through hacking of government portals and online platforms were transferred to individuals under scrutiny, including politically exposed persons and their associates. However, no formal charges have been filed by the agency against any specific individual at this stage, and the investigation remains focused on financial records and digital transaction trails.
The case originates from earlier investigations conducted by Karnataka Police, which had filed a chargesheet against Sriki in 2021. He was accused of hacking an online gaming platform and a government website. Investigators had also flagged his alleged involvement in a wider network dealing in cryptocurrencies and suspected illicit financial transactions.
Bitcoin Trail Under Review
ED officials said the current probe aims to trace the flow of funds believed to have been moved through Bitcoin and other digital assets, which may have been used to conceal the origin of illicit earnings. The agency is analyzing blockchain records, banking transactions, and digital wallet activity to map the full extent of the alleged money trail.
During the searches conducted across Bengaluru, officials reportedly seized multiple documents, electronic devices, and financial records from residential and commercial premises. These materials are now undergoing forensic examination to reconstruct the alleged transaction network and identify intermediaries involved.
Investigators are also looking into whether proceeds from the alleged cyber fraud were routed through shell companies, fictitious entities, or layered transactions designed to obscure the source of funds. The role of potential facilitators and financial handlers is also under scrutiny as part of the broader probe.
Political Attention Grows
While the inclusion of premises linked to a political figure has triggered public and political attention, enforcement officials have maintained that the action is strictly based on financial intelligence inputs and is aimed at uncovering suspected money laundering activities linked to cybercrime.
Experts note that cryptocurrency-based financial crimes have become increasingly complex due to the decentralized and pseudonymous nature of blockchain transactions, making enforcement and tracking significantly more challenging. This has led to intensified coordination between cybercrime units and financial investigation agencies.
Authorities have confirmed that forensic analysis of seized digital evidence is currently underway. The findings are expected to play a crucial role in determining the next steps of the investigation, including further questioning of individuals linked to the case.
Officials also indicated that additional persons may be summoned for interrogation depending on the outcome of the digital and financial analysis. The ED is working closely with cybercrime specialists to reconstruct the complete flow of transactions across multiple digital platforms and wallets.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
