Key Highlights
- The ED has filed a 3,500-page charge sheet against alleged hacker Sriki and two associates under the PMLA.
- Investigators claim cryptocurrency was used to launder proceeds from cyberattacks, darknet operations, and extortion.
- The complaint links the accused to the Karnataka e-procurement hack, crypto exchange breaches, and online gaming platforms.
India’s Enforcement Directorate (ED) has filed a 3,500-page prosecution complaint against alleged Bengaluru hacker Srikrishna Ramesh, popularly known as Sriki, detailing how cryptocurrency was allegedly used to move proceeds from cybercrime through international exchanges and darknet infrastructure.
According to a report by The Times of India, the complaint, filed before a special court under the Prevention of Money Laundering Act (PMLA), names Sriki, cryptocurrency trader Robin Khandelwal, businessman Sunish Hegde, a private company, and two other individuals. The group reportedly operated a sophisticated network combining hacking, cyber extortion, cryptocurrency laundering, and darknet activity.
Rather than focusing solely on individual cyberattacks, the prosecution complaint portrays digital assets as the financial backbone of the alleged criminal operation.
How the money allegedly moved
According to the prosecution complaint, Sriki allegedly exploited vulnerabilities across cryptocurrency exchanges, online gaming platforms, and government systems before routing the proceeds through multiple cryptocurrency transactions.
According to the report, Robin Khandelwal acted as the financial conduit, using international cryptocurrency exchanges to layer and move digital assets before transferring funds into wallets controlled by Sriki and his associates.
Investigators claim the movement of funds across multiple crypto platforms was designed to obscure the origin of stolen assets before they were converted into usable proceeds. Unlike earlier cybercrime investigations where crypto appeared only as a payment method, the report alleges digital assets were used as the primary mechanism for laundering illicit funds.
Sriki, Khandelwal, and Hegde were arrested by the ED in May and remain in judicial custody at Bengaluru’s Parappana Agrahara Central Prison. The prosecution complaint will now form the basis of proceedings before the special PMLA court.
Government portal hack among major allegations
Among the most significant allegations is the breach of Karnataka’s e-procurement portal, where investigators claim approximately ₹11.5 crore was siphoned from the government system.
The prosecution complaint also links Sriki to alleged intrusions involving cryptocurrency exchange Unocoin and several online poker platforms. According to investigators, proceeds from these alleged attacks were routed through cryptocurrency markets before being redistributed through wallets linked to the accused.
Investigators detail alleged extortion scheme
The report further alleges that businessman Sunish Hegde financed parts of Sriki’s activities while pressuring him to target online gaming platforms.
According to the complaint, operators of compromised gaming platforms were allegedly coerced into making payments exceeding ₹2 crore, using cash, casino chips, and cryptocurrency-linked assets. Authorities claim these proceeds were later integrated into the broader laundering network outlined in the charge sheet.
ED expands crypto enforcement beyond investment scams
The Sriki prosecution comes as the Enforcement Directorate expands its focus beyond crypto investment scams into wider financial and cybercrime investigations involving digital assets.
Last month, the agency launched a ₹2,500 crore FEMA probe into several Bengaluru-based crypto payment firms, alleging they facilitated unauthorized cross-border remittances using stablecoins such as USDT without approval from the Reserve Bank of India.
While that investigation centers on alleged illegal remittance activity, the Sriki case focuses on cryptocurrency’s alleged role in laundering proceeds from hacking, cyber extortion, and darknet operations. Together, the two cases suggest the ED is widening its scrutiny of how digital assets are used across different forms of financial crime.
Disclaimer: This report relies on local coverage and will be updated when official statements are released. All allegations detailed here are from investigative authorities and have not been adjudicated in court. All named individuals and entities are presumed innocent until proven guilty.
Also Read: Top 10 Crypto Hacks of H1 2026: How Hackers Drained $972 Million in Six Months
