The Principal City Civil and Sessions Court (CCH-1) on June 25 denied regular bail to accused Hegde and anticipatory bail to co-accused Prasidh Shetty, bringing to light findings that Sriki meticulously laundered stolen Bitcoins, with the Nalapad brothers among the beneficiaries.
Court Findings on Bitcoin Laundering
According to the court orders reviewed by DH, the Special Investigation Team (SIT) and the Enforcement Directorate (ED) attributed the findings. The court stated that Sriki, the prime accused, engaged in a systematic process to launder stolen Bitcoins, converting them into cash and assets.
The Nalapad brothers, prominent businessmen, were identified as beneficiaries of the laundered funds, though their exact role remains under investigation.
Bail Denied for Hegde and Shetty
The court denied regular bail to Hegde, citing the seriousness of the offense and the need for further investigation. Anticipatory bail for Prasidh Shetty was also rejected, as the court found prima facie evidence of his involvement.
“The accused have been part of a well-organized crime network that laundered huge sums through multiple channels,” the court noted in its order.
Impact and Next Steps
The case has drawn significant attention in Karnataka, highlighting the growing challenge of cryptocurrency-related crimes. The SIT and ED are continuing their probe to trace the full extent of the laundering network.
Further arrests and asset seizures are expected as the investigation progresses.
