In a significant development related to an alleged Bitcoin-linked money laundering case, the Enforcement Directorate (ED) conducted searches at the homes of Congress MLA N.A. Haris and his son, Mohammed Nalapad, the State President of Karnataka Pradesh Youth Congress in Bengaluru. Simultaneously, the agency expanded its investigation to include hacker Srikrishna and other suspects.
The ED carried out search operations at 12 locations across Karnataka under the Prevention of Money Laundering Act (PMLA) with the support of Central Reserve Police Force (CRPF) personnel. This probe is a result of multiple FIRs and chargesheets filed by the Karnataka Police, accusing individuals of activities such as hacking websites, stealing bitcoins, extortion, and violations under the Narcotic Drugs and Psychotropic Substances Act (NDPS) Act.
Allegedly, the investigation uncovered a method involving the hacking of websites and cryptocurrency wallets to steal Virtual Digital Assets (VDAs), which were then transferred through crypto trading platforms. The proceeds were reportedly layered through bank accounts to hide their source. The ED also searched the premises of Aqeeb Khan, grandson of former Union Minister K. Rahman Khan, suspecting him to be a direct beneficiary of the illicit funds.
During the searches, the ED officials also visited the residence of N.A. Haris in Ashok Nagar and Mohammed Nalapad’s house. The action is believed to be linked to suspected ties between Nalapad and Srikrishna, with the ED alleging illegal transactions amounting to Rs 4.5 crore between the two. Mohammed Nalapad had previously been interrogated by the State CID in connection with the Bitcoin case, and the scrutiny of seized documents is ongoing as the investigation progresses. Official statements from the ED are awaited for further details.
