Daijiworld Media Network - Bengaluru
Bengaluru, Apr 20: The Enforcement Directorate (ED) in Bengaluru has intensified its investigation into a cryptocurrency-linked money laundering network, conducting coordinated raids across multiple locations connected to alleged cybercriminal Srikrishna Ramesh alias Sriki and associates, including the family of Congress MLA N A Haris.
Officials confirmed that searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, at around 17 premises across Karnataka, beginning at approximately 6:30 am on Monday. The operation involved more than 100 ED personnel from the Bengaluru zone and was executed under central security cover.
In an official statement, the agency said, “It is conducting search action against Srikrishna Ramesh alias Sriki and other accused persons at 12 premises spread across Karnataka including the residence of Mohammed Haris Nalapad and Omar Farook Nalapad - sons of Congress sitting MLA from Shantinagar constituency in Bengaluru, N A Haris.”
The ED further stated, “The searches are being conducted under the Prevention of Money Laundering Act (PMLA), 2002. The investigation so far has revealed that Mohammed Harris and Omar Farook are close associates of Srikrishna Ramesh and are main beneficiaries of proceeds of crime.”
The case stems from multiple FIRs and chargesheets filed by the Karnataka Police relating to a 2017 cybercrime investigation involving hacking of national and international websites. The allegations include theft of bitcoins, extortion, and violations under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
Investigators allege that the accused hacked websites and crypto wallets to steal virtual digital assets, which were then sold via crypto trading platforms. The proceeds were layered through multiple bank accounts before being used for personal benefit.
“The investigation under PMLA has revealed the modus operandi by the accused persons, which includes hacking of websites/wallets to steal virtual digital assets (VDAs), data/money (proceeds of crime); sale of stolen VDAs were routed through crypto trading platforms etc,” the ED stated.
Authorities suspect that Mohammed Harris Nalapad and Omar Farooq Nalapad, sons of MLA N A Haris, were closely associated with Sriki and may have benefited from the alleged proceeds of crime.
Separately, investigators are examining suspected financial transactions worth around Rs 4.65 crore between Sriki and the Nalapad family over several years prior to the exposure of the Bitcoin scam. Officials are assessing whether these dealings are linked to cybercrime proceeds or constitute unrelated illicit transactions.
The raids covered multiple locations including the Shantinagar residence of MLA N A Haris, properties linked to his sons Mohammed Harris Nalapad and Omar Farooq Nalapad, and other premises across Bengaluru, including an address behind Garuda Mall.
ED officials are currently analysing seized documents, digital evidence and financial records to trace the flow of funds and establish the exact nature of financial linkages.
The agency is expected to record statements from MLA N A Haris and his son Mohammed Nalapad as part of the ongoing probe. The investigation into the Bitcoin-linked cybercrime and alleged money laundering network remains active and is likely to expand further.