The Enforcement Directorate conducted coordinated raids across Bengaluru at around 12 locations as part of an ongoing money laundering investigation linked to cryptocurrency transactions and a 2017 bitcoin hacking case. The searches targeted premises associated with the sons of Karnataka Congress MLA NA Haris, as well as individuals suspected of involvement in illegal crypto activities.
Among those under scrutiny are Mohammed Haris Nalapad and Omar Farook Nalapad, who are alleged to have benefited from proceeds generated through illicit bitcoin transactions. Investigators are examining whether funds originating from stolen cryptocurrency were routed to them through complex digital channels. The case also involves alleged hacker Srikrishna Ramesh, also known as Sriki, who is accused of orchestrating cyberattacks on multiple national and international platforms and siphoning off bitcoins, including from a Dubai-based crypto exchange.
The ED’s probe is based on earlier FIRs and chargesheets filed by Karnataka Police in connection with the 2017 hacking incident. Authorities are now tracing the financial trail of the stolen cryptocurrency to determine how the proceeds were laundered and distributed. As part of this effort, the agency also searched the residence of Mohammed Hakeeb Khan, grandson of former Union minister K Rehman Khan. Officials suspect that certain financial transactions through his bank accounts may be linked to the broader network under investigation.
The case has previously been handled by state agencies, including the Central Crime Branch (CCB) and the Criminal Investigation Department (CID), before being taken up by the ED for its money laundering angle. The current phase of the investigation focuses on identifying beneficiaries, tracking cross-border crypto flows, and establishing links between the accused individuals.
The raids have triggered a political response, with Karnataka minister Priyank Kharge criticising the action. He alleged that central agencies such as the ED, Income Tax Department, and CBI are being used for political purposes and questioned the timing of the searches. He stated that clearer details would emerge only once the agency files a formal chargesheet.
The investigation remains ongoing, with authorities analysing seized digital devices, financial records, and cryptocurrency transactions to build a comprehensive case around alleged money laundering and cybercrime activities.
