The Karnataka government has denied sanction to prosecute four police officers implicated in the Bitcoin scam, according to sources. The state government's decision comes despite a recommendation from the Special Investigation Team (SIT) that probed the case.
Officers Arrested and Released on Bail
The four officers—all from the Karnataka Police—were arrested in connection with the Bitcoin scam, which involved the alleged misappropriation of Bitcoin seized during earlier investigations. However, they were subsequently released on bail and later reinstated to their duties. The SIT had sought permission to charge them under relevant sections of the Indian Penal Code and the Karnataka Police Act.
Government's Stance
The Karnataka government, led by the ruling party, has cited a lack of sufficient evidence to proceed with prosecution. According to a senior official, the government reviewed the SIT’s findings and concluded that the evidence did not meet the threshold for criminal charges. This decision has sparked controversy, with opposition parties accusing the government of shielding corrupt officers.
Details of the Bitcoin Scam
The Bitcoin scam came to light in 2021 when it was revealed that a large amount of Bitcoin, seized during the investigation of a hacking case, had gone missing. The SIT was formed to investigate the disappearance, and it subsequently arrested several individuals, including the four police officers. The officers were accused of colluding with cybercriminals to siphon off the seized cryptocurrency.
Political Reactions
Opposition leaders have criticized the government’s decision, calling it a cover-up. “This is a clear case of protecting the guilty within the police force,” said a spokesperson for the Congress party. “The SIT had recommended prosecution after a thorough investigation, and the government’s refusal undermines the rule of law.” The ruling party, however, maintained that the decision was based on legal advice and that there was no political interference.
Impact on the Investigation
The denial of prosecution sanction effectively closes the case against the four officers, as no further legal action can be taken without the government’s approval. The SIT had already completed its investigation and submitted a chargesheet, but the prosecution cannot proceed without the requisite sanction. This development highlights the challenges in prosecuting cases involving police misconduct, where the state government holds significant authority over disciplinary and legal proceedings.



