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Karnataka Bitcoin Scam: Chargesheet Names Congress MLAs Son as First Politically Connected Accused
The Special Investigation Team (SIT) of Karnataka Police has named Mohammed Haris Nalapad, the son of Congress MLA N. A. Haris, as a co‑accused in its latest chargesheet. The filing, submitted to a Bengaluru court on 20 May 2026, marks the first time a politically connected individual has been formally arraigned in the state’s high‑profile Bitcoin theft case.
The scam dates back to 2017, when a hacker known as Srikrishna (alias Sriki) stole 60.6 Bitcoins from the Tumakuru‑based exchange Unocoin. The stolen coins were valued at roughly ₹1.14 crore at the time of the theft and are now estimated to be worth more than ₹35 crore. The SIT’s chargesheet alleges that Nalapad was a key beneficiary of the proceeds and that he helped convert the stolen cryptocurrency into cash that was routed through hawala channels.
Srikrishna was arrested in November 2020 in a separate dark‑web drug procurement case, after which investigators linked him to a series of cybercrimes, including the Unocoin hack and the theft of ₹11.5 crore from the Karnataka e‑procurement portal in 2019. In 2023 the Congress government constituted a SIT to re‑investigate the case. The Nalapad brothers were questioned by the SIT in 2024 and again in February 2025. On 20 April 2026 the Enforcement Directorate (ED) conducted searches at locations linked to Sriki, the Nalapad brothers and Aqeeb Khan, the grandson of former Union minister K. Rahman Khan.
The chargesheet names three accused: Nalapad, Sriki and Sriki’s accountant Robin Khandelwal. The ED had earlier alleged that Nalapad, his brother Omar Farook Nalapad and Aqeeb Khan benefited from the proceeds of the crime. The investigation is being carried out under the Prevention of Money Laundering Act (PMLA), 2002, and is still ongoing.
The scam emerged during the tenure of the Bharatiya Janata Party (BJP) in Karnataka. Ahead of the 2023 assembly elections, the Congress party alleged that senior BJP leaders were involved in the theft. In response to Nalapad’s inclusion in the chargesheet, Home Minister Priyank Kharge said that more names, including those from the BJP, would surface and that the investigation was being conducted transparently. Nalapad, in a statement to media on 10 June 2026, called the chargesheet a political conspiracy aimed at undermining his father’s ministerial prospects.
At present the ED’s PMLA investigation continues, with no final determination of liability or seizure of assets yet reported. The SIT has not yet released a final report, and the court has not yet scheduled a hearing. The case remains a focal point for discussions on crypto regulation, money‑laundering safeguards and the intersection of politics and cybercrime in India.
In summary, the 2026 chargesheet formally names Mohammed Haris Nalapad as a co‑accused in the 2017 Unocoin Bitcoin theft. The investigation, involving the SIT, ED and PMLA, is still active, with additional suspects expected to be named. The outcome of the case will likely influence future regulatory scrutiny of cryptocurrency exchanges and the handling of politically connected individuals in financial crimes.
The scam dates back to 2017, when a hacker known as Srikrishna (alias Sriki) stole 60.6 Bitcoins from the Tumakuru‑based exchange Unocoin. The stolen coins were valued at roughly ₹1.14 crore at the time of the theft and are now estimated to be worth more than ₹35 crore. The SIT’s chargesheet alleges that Nalapad was a key beneficiary of the proceeds and that he helped convert the stolen cryptocurrency into cash that was routed through hawala channels.
Srikrishna was arrested in November 2020 in a separate dark‑web drug procurement case, after which investigators linked him to a series of cybercrimes, including the Unocoin hack and the theft of ₹11.5 crore from the Karnataka e‑procurement portal in 2019. In 2023 the Congress government constituted a SIT to re‑investigate the case. The Nalapad brothers were questioned by the SIT in 2024 and again in February 2025. On 20 April 2026 the Enforcement Directorate (ED) conducted searches at locations linked to Sriki, the Nalapad brothers and Aqeeb Khan, the grandson of former Union minister K. Rahman Khan.
The chargesheet names three accused: Nalapad, Sriki and Sriki’s accountant Robin Khandelwal. The ED had earlier alleged that Nalapad, his brother Omar Farook Nalapad and Aqeeb Khan benefited from the proceeds of the crime. The investigation is being carried out under the Prevention of Money Laundering Act (PMLA), 2002, and is still ongoing.
The scam emerged during the tenure of the Bharatiya Janata Party (BJP) in Karnataka. Ahead of the 2023 assembly elections, the Congress party alleged that senior BJP leaders were involved in the theft. In response to Nalapad’s inclusion in the chargesheet, Home Minister Priyank Kharge said that more names, including those from the BJP, would surface and that the investigation was being conducted transparently. Nalapad, in a statement to media on 10 June 2026, called the chargesheet a political conspiracy aimed at undermining his father’s ministerial prospects.
At present the ED’s PMLA investigation continues, with no final determination of liability or seizure of assets yet reported. The SIT has not yet released a final report, and the court has not yet scheduled a hearing. The case remains a focal point for discussions on crypto regulation, money‑laundering safeguards and the intersection of politics and cybercrime in India.
In summary, the 2026 chargesheet formally names Mohammed Haris Nalapad as a co‑accused in the 2017 Unocoin Bitcoin theft. The investigation, involving the SIT, ED and PMLA, is still active, with additional suspects expected to be named. The outcome of the case will likely influence future regulatory scrutiny of cryptocurrency exchanges and the handling of politically connected individuals in financial crimes.
