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The Enforcement Directorate conducted multiple raids across Bengaluru on April 20. The locations were allegedly linked to the sons of a Congress MLA in connection with a crypto theft case. It highlights the intensifying scrutiny of digital financial crimes in India. Earlier, the Central Crime Branch (CCB) and the Criminal Investigation Department (CID) were probing the case.
The ED conducted searches at multiple locations in Bengaluru, including premises linked to the two sons of Karnataka Congress MLA NA Haris and the grandson of a former Union minister, in connection with a cryptocurrency-linked money laundering case.
Around 12 locations associated with Mohammed Haris Nalapad and Omar Farook Nalapad, the MLA’s sons, as well as alleged crypto hacker Srikrishna Ramesh, also known as Sriki, were raided by the central agency.
The ED officers also raided Mohammed Hakeeb Khan's residence in Bengaluru. He is the grandson of former Union Minister K Rehman Khan. Officials suspect suspicious money transfers through his bank accounts, prompting the searches. Transactions between Hakeeb Khan and Sriki are also under the scanner as part of the broader probe.
The latest raids are part of an ongoing probe into suspected proceeds-laundering from illegal crypto transactions. According to officials, the case stems from Karnataka Police FIRs and chargesheets related to a 2017 hacking incident involving national and international websites, in which Sriki and his associates allegedly stole bitcoins.
Mohammed Haris and Omar Farook are suspected to be beneficiaries of the proceeds of crime. Investigators believe that bitcoins hacked from a Dubai-based crypto exchange were routed to the Nalapads, with the ED tracking the digital trail.
Nalapad brothers were also interrogated in June 2024 over alleged financial links to Sriki. It is suspected that the brothers financed Sriki’s expensive stays, travel, and other expenditures between 2017 and 2018.
The action drew sharp criticism from the ruling Congress. Karnataka Minister Priyank Kharge alleged that central agencies such as the Income Tax Department, the ED, and the CBI are being used as political tools by the central government. He questioned the timing of the action and said the reasons behind the raids remain unclear, adding that clarity would emerge only after the ED files a chargesheet. Kharge also claimed that the ED has a conviction rate of only 2 percent and described the agency as a ‘puppet’ of the BJP-led central government.
In 2025, crypto criminals stole more than $3.4bn (£2.5bn), according to investigators at blockchain analysis firm Chainalysis. Most of the money is being stolen through massive cyberattacks on crypto companies. For example, North Korean hackers swiped $1.5bn (£1.1bn) from crypto exchange Bybit in February 2025.
The losses in this case, as in the vast majority of others, are covered by the deep-pocketed crypto firms, with little impact on individuals. The year 2025 also saw an increase in attacks on individual crypto investors.
Hacking, scamming, or coercing individuals accounted for an estimated 20% of all crypto value stolen, totaling $713 m (£532m).
Also Read: Fake Ledger Live App Triggers $9.5M Crypto Theft on App Store
The ED is expected to analyze documents, digital devices, and financial records seized during the raids. These could provide further clarity on how the alleged cryptocurrency gains were moved, stored, and possibly integrated into the formal economy.
