The Enforcement Directorate conducted coordinated searches at 17 locations in Bengaluru on Wednesday as part of its investigation into the Bitcoin scam case linked to Srikrishna, also known as Sriki. The agency is probing alleged money laundering, cyber fraud and suspicious cryptocurrency transactions involving digital wallets, crypto exchanges and possible cross-border fund movements.
Digital Devices And Records Seized
According to sources, the searches were carried out as investigators intensified efforts to trace digital transactions and cryptocurrency activity connected to Sriki. ED teams are examining whether crypto exchanges and digital wallets were used to route allegedly illicit funds through layered transaction chains.
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Investigators suspect the network may involve not only investment-related activity but also hacking of digital platforms and unauthorised transfers of crypto assets. During the raids, electronic devices, computer systems, mobile phones and financial records were seized and sent for forensic analysis.
₹18 Lakh Token Investment Complaint Under Probe
A fresh angle has emerged from a separate complaint registered at RR Nagar Police Station involving an alleged ₹18 lakh cryptocurrency token investment fraud. The case is linked to Bhavish Global Ltd and Novastro, whose CEO and founder K. Sridhar has been accused of cheating investors through promises of high returns.
According to the complaint, investors were allegedly assured that crypto token investments would generate significant profits within a short period. The promised returns, however, did not materialise, and the invested funds were not returned. The complainant claimed that initial assurances were given, but the accused later went out of contact.
Case documents state that a token purchase agreement was signed on May 8, 2024, under which nearly 12,50,000 NOVAS tokens were purchased, valued at around ₹18.76 lakh. The complaint alleges that artificial hype was created around token price appreciation to attract investors.
Wallet Trails And Foreign Links Being Examined
The ED probe is not limited to the new complaint and is also connected to the broader Bitcoin scam network in which Sriki has long been under investigation. The agency is examining whether the network involved crypto investments, system hacking activity and cross-border fund movement.
Officials are analysing data extracted from seized devices to map crypto wallets, exchange transactions and complete fund trails. Some transactions were allegedly routed through multi-layer wallet structures designed to obscure the original source of funds.
The agency is also examining possible links with foreign crypto exchanges and offshore accounts. Police and ED investigations are continuing, with further questioning and possible arrests expected as agencies probe whether the network has links to an international crypto fraud syndicate.
