ED arrests Sriki, 2 others in Karnataka Bitcoin and e-procurement scam
Synopsis
The ED's arrest of Sriki — the alleged mastermind behind the Karnataka Bitcoin scam and e-procurement portal hack — marks a major escalation in a years-long investigation. With Mohammed Nalapad, a former Congress youth leader, now under the scanner, the case is rapidly acquiring a sharp political dimension.
Key Takeaways
The ED arrested Srikrishna (Sriki) , Robin Khandeval , and Sunish Hegde on 9 May 2025 in connection with the Karnataka Bitcoin scam .
The arrests followed raids at 12 locations on 20 April , including premises linked to Mohammed Nalapad and Hakeeb Rahman Khan .
The case involves alleged hacking of the Karnataka government's e-procurement portal and illegal transfer of government funds and cryptocurrencies.
All three accused were remanded to ED custody for 10 days till 19 May by the ED Special Court.
Former Congress youth leader Mohammed Nalapad faces increasing scrutiny over alleged links to the accused; he had appeared twice before the SIT earlier.
The Enforcement Directorate (ED) on Saturday, 9 May arrested Srikrishna, widely known as Sriki, along with Robin Khandeval and Sunish Hegde, in connection with the alleged Bitcoin scam and the hacking of the Karnataka government's e-procurement portal. The arrests follow years of investigation and come just weeks after ED officials conducted raids across 12 locations on 20 April.
Key Arrests and Background
The 20 April raids targeted premises linked to Sriki, former state Congress youth leader Mohammed Nalapad, and Hakeeb Rahman Khan, grandson of former Union Minister K. Rehman Khan. Investigators say the case centres on the alleged hacking of the Karnataka government's e-procurement website and the illegal transfer of government funds into multiple accounts. Authorities reportedly also uncovered the theft and illegal transfer of cryptocurrencies through several digital wallets during the course of the probe.
Political Scrutiny on Mohammed Nalapad
Following Sriki's arrest, political attention has intensified around Mohammed Nalapad, who is now facing heightened scrutiny. According to officials, the ED is examining Nalapad's alleged links with Sriki and other accused individuals, and is collecting documents related to those connections. Notably, Nalapad had previously appeared twice before the Special Investigation Team (SIT) for questioning during the state police's earlier probe into the matter.
SIT Probe and Government Response
The Karnataka government had ordered a CID SIT investigation following the initial allegations. The SIT probe had reportedly uncovered links between Nalapad and several of the accused persons involved in the case. The ED's current investigation represents a parallel financial and cryptocurrency-focused inquiry that has expanded significantly in scope over recent years.
Court Remand and Next Steps
All three arrested accused — Sriki, Robin Khandeval, and Sunish Hegde — were produced before a judge, following which the ED Special Court remanded them to ED custody for 10 days, until 19 May. The ED had sought the custody period for further interrogation in connection with the broader financial and cryptocurrency-related investigation. With the remand in place, investigators are expected to press for more details on the alleged fund transfers and digital wallet transactions in the days ahead.
Point of View
However, is the growing focus on Mohammed Nalapad: a sitting political figure with Congress ties facing cryptocurrency-linked allegations is precisely the kind of case that can redraw political equations in Karnataka. What mainstream coverage underplays is that the SIT had reportedly flagged Nalapad's links months ago — the question is why it took this long for the ED to move, and whether the timing carries any political calculus of its own.
NationPress
9 May 2026
Frequently Asked Questions
Who is Sriki and what is the Karnataka Bitcoin scam?
Sriki, whose full name is Srikrishna, is the key accused in an alleged Bitcoin scam involving the hacking of the Karnataka government's e-procurement portal and the illegal transfer of government funds into multiple accounts. Investigators also reportedly uncovered the theft and illegal movement of cryptocurrencies through digital wallets during the probe.
Who else was arrested along with Sriki?
The ED arrested Robin Khandeval and Sunish Hegde alongside Sriki on 9 May 2025. All three were subsequently remanded to ED custody for 10 days until 19 May by the ED Special Court.
What is Mohammed Nalapad's alleged connection to the case?
Mohammed Nalapad, a former Karnataka Congress youth leader, is reportedly under investigation for alleged links with Sriki and other accused persons. The ED is collecting documents related to these alleged connections; Nalapad had earlier appeared twice before the SIT for questioning during the state police probe.
What triggered the ED investigation into the Karnataka Bitcoin scam?
The Karnataka government ordered a CID SIT investigation after allegations emerged of hacking into the state's e-procurement website and illegal fund transfers. The ED subsequently launched a parallel financial and cryptocurrency-focused probe, which has expanded over several years and led to the current arrests.
What happens next in the case?
With the three accused in ED custody until 19 May, investigators are expected to interrogate them on alleged fund transfers, digital wallet transactions, and the broader cryptocurrency network. The ED's scrutiny of Mohammed Nalapad's alleged role is also expected to intensify in the coming days.
