Karnataka Home Ministry Refuses to Sanction Prosecution of Four Cops in Bitcoin Case

In the high-profile Bitcoin scam that has created a political firestorm in Karnataka, the Home Ministry has refused to sanction four senior police officers, leading to their names being dropped from the charges.

The police officers against whom prosecution sanction was denied are Dy SP Sridhar Pujar, Police Inspector Chandradhar, DM Prashanth Babu and Lakshmikantayya, whose names were earlier included in the investigation.

The case dates back to 2020-21 when allegations surfaced that a hacker Srikrishna alias Sriki was arrested by the Bengaluru police and that bitcoins linked to him were illegally transferred. The investigation alleged that the officers, along with cyber expert Santosh Kumar, accessed cryptocurrency wallets belonging to Srika and Robin Khandeval and illegally transferred bitcoins worth around ₹1.83 crore.

Based on these findings, the SIT registered a separate case against the then CCB officers who investigated Sriki. Dy SP Sreedhar K. Pujar and police inspectors DM Prashanth Babu, Lakshmikantaiah and Chandradhara were among the accused. All four officers were arrested during the investigation.

Under the rules, the prosecution of government officials requires prior sanction from the Ministry of Home Affairs before charges can be filed in court. As the ministry refused the sanction, the investigating agencies were forced to withdraw their names, sources said.

However, the investigation of the main accused, cyber expert Santosh Kumar, will continue. The SIT says there is substantial evidence against him regarding the alleged illegal transfer of bitcoins and manipulation of digital evidence.

The SIT has completed investigations in nine separate cases and submitted its reports to the respective courts.

The Bitcoin scam has been the subject of a major political confrontation between the Congress and the BJP, with serious allegations that senior police officers and influential politicians benefited from the use of hacker Sriki. The failure to sanction the prosecution of the officers is expected to spark further controversy.

Published – 9 Jul 2026 18:37 IST