ED raids K'taka Cong leader for crypto fraud probe

• ED raids 12 Bengaluru locations over alleged crypto fraud
• Congress MLA N Harris and sons named as beneficiaries in probe
• Investigation targets proceeds from hacker Sriki's bitcoin theft

Bengaluru: The Enforcement Directorate (ED) on Monday conducted raids at 12 locations in Karnataka's capital, Bengaluru, including the premises of Congress

leader N Harris and his two sons under the Prevention of Money-Laundering Act (PMLA), 2002. The raids stemmed from alleged crypto fraud involving cyber hacker Sriki, who had reportedly hacked a government portal. ED sources told Times Now that the proceeds of crime had allegedly gone to N. Harris and his sons. The federal probe agency has not yet issued any official statement in this regard. For the unversed, last year the Karnataka Police had filed a chargesheet against Srikrishna Ramesh, alias Sriki, for hacking an online gaming website in 2021 and the government portal. The chargesheet was filed under various sections of the Indian Penal Code (IPC) and IT Act. Sriki is accused of a multi-crore bitcoin and drug trafficking racket in Karnataka. He allegedly stole bitcoin from a cryptocurrency exchange. In Dec 2018, Sikri hacked the online gaming website. He is also accused of buying drugs and financing them through bitcoin. The investigation in this case has been initiated based on multiple FIRs and chargesheets filed by Karnataka Police alleging offences such as hacking of national and international websites, stealing of bitcoins, extortion and violation of NDPS, Act. The investigation in the case revealed the following modus operandi by the accused persons: -

• Hacking of websites/wallets to steal VDAs (Proceeds of crime).
• Hacking of websites to steal data/money (Proceeds of Crime)
• Sale of stolen VDAs through Crypto Trading Platforms (Routing).
• The sale proceeds are transferred through bank accounts (Layering).
• Use of the sale proceeds for personal benefits by Shri. Srikrishna and his associates.

"The search also covers residence Shri. Mohammed Haris Nalapad and Omar Farook Nalapad. They are sons of Shri. NA Harris who is sitting Member Karnataka Legislative Assembly from Shantinagar Constituency in Bangalore," the ED said in a statement.

"Investigation under PMLA,2002 revealed that Shri. Mohammed Harris Nalapad and Shri. Omar Farook Nalapad are close associates of Shri. Srikrishna Ramesh and are main beneficiaries of Proceeds of crime," it further added.