Karnataka Home Department refuses to grant sanction for prosecution against four police officers in bitcoin case
Home Dept denies prosecution sanction for four police officers in Karnataka's high-profile Bitcoin scam, dropping them from the charge sheet.
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The officers against whom prosecution sanction was denied are Dy SP Sridhar Pujar, Police Inspector Chandradhar, D.M. Prashanth Babu, and Lakshmikantayya, whose names were earlier included in the investigation.
Updated - July 09, 2026 09:03 pm IST - Bengaluru
In the high-profile Bitcoin scam that created a political storm in Karnataka, the State Home Department has declined to grant prosecution sanction against four senior police officers, resulting in their names being dropped from the charge sheet.
The officers against whom prosecution sanction was denied are Dy SP Sridhar Pujar, Police Inspector Chandradhar, D.M. Prashanth Babu, and Lakshmikantayya, whose names were earlier included in the investigation.
The case dates back to 2020-21, when allegations surfaced that hacker Srikrishna alias Sriki was arrested by Bengaluru Police and that bitcoins linked to him were unlawfully transferred. The investigation had alleged that the officers, along with cyber expert Santosh Kumar, had accessed cryptocurrency wallets belonging to Sriki and Robin Khandeval and illegally transferred bitcoins worth approximately ₹1.83 crore.
Based on these findings, the SIT registered a separate case against the then CCB officers who had investigated Sriki. The accused included Dy SP Sreedhar K. Pujar and Police Inspectors D.M. Prashanth Babu, Lakshmikantaiah, and Chandradhara. All four officers were arrested during the course of the investigation.
As per the rules, prosecution of government officials requires prior sanction from the State Home Department before a charge sheet can be filed in court. Since the department denied the sanction, the investigating agencies were compelled to drop their names, sources said.
However, the investigation against the prime accused, cyber expert Santosh Kumar, will continue. The SIT has maintained that there is substantial evidence against him regarding the alleged illegal transfer of bitcoins and tampering of digital evidence.
The SIT has completed the investigation in nine separate cases and submitted its reports before the competent 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 had benefited by using hacker Sriki. Not granting sanction for prosecution against police officials is expected to trigger another controversy.
Published - July 09, 2026 06:37 pm IST
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