Bitcoin scam in Karnataka opens Pandora's box, Congress demands probe

Congress alleged that country's biggest bitcoin scam was unearthed in Karnataka and instead of conducting a fair probe into it, the BJP government was trying to cover it up.

Bengaluru: Bitcoin scam opened Pandora's Box as Congress trained its guns on BJP in Karnataka. Chief Minister Basavaraj Bommai called on Prime Minister Narendra Modi amid the opposition allegations that the BJP government was not doing enough to probe the alleged Bitcoin scam.

AICC spokesperson Randeep Singh Surjewala demanded a judicial probe into the scam. 'Whale Alert' (a Twitter account that tracks large scale cryptocurrency transactions) reflects that on December 1, 2020 and on April 14, 2021, Bitcoins from the 2016 hack of Bitfinex Bitcoin exchange were transferred. The value comes out to be USD 704.8 million USD (equivalent to Rs 5,240 crore).

Notably, Congress MLA and official spokesperson Priyank Kharge released hacker Shrikrishna voluntary statement and alleged that the government will fall if the probe is conducted impartially. BJP leaders, their children and officials were involved in the scam, he alleged. The government said the case has been handed over to the Enforcement Directorate, but where is the order? he questioned.

AICC spokesperson Randeep Singh Surjewala alleged that 'India’s biggest bitcoin scam' had been unearthed in Karnataka and instead of conducting a fair investigation, the BJP government appeared to be preoccupied with 'operation bitcoin scam cover-up.

In a volley of questions to the State government, he asked, “Were the stolen bitcoins transferred from the wallet of alleged hacker Sri Krishna? How many bitcoins and of what value? How does the Bengaluru police then suggest that the 31 and 186 bitcoins, allegedly transferred to police wallet, were lost or were found to be fake transactions?”

He sought to know the role and responsibility of Chief Minister Basavaraj Bommai, who was the Home Minister when the arrest was made in the Bitcoin scam, and others in the State government. He also asked why the CBI’s Interpol wing was not informed: “despite such gigantic offences with clear international ramifications”. “Why did the government wait for over five months, up to April 24, 2021, to write to Interpol and that also after the release of Sri Krishna on April 17, 2021?” he asked.