Senior prison officials likely to be questioned in Bitcoin scam

The Special Investigation Team (SIT) probing the controversial Bitcoin scam is likely to question senior officials who were posted with the Karnataka Prisons Department when hacker Sri Krishna was lodged in Parappana Agrahara Central Prison.

The SIT during the course of its investigation has reportedly got leads to the hacker being forced to transfer some bitcoins while in judicial custody. The SIT is likely to issue summons to some officials who were posted with the department during that period asking them to appear before it for questioning.

Sriki, who was arrested in a case pertaining to transportation of drugs, later revealed that he is a hacker who has been hacking websites, including bitcoin trading sites and government websites. When he was arrested, the police thought that he was small drug peddler procuring drugs from the darknet. He also claimed that he had hacked into and stole bitcoins from Bitfinex, a Bitcoin trading company. This is considered to be one of the largest cryptocurrency heists in the world.

The stolen and blacklisted Bitfinex coins were moved to unknown destinations when the hacker was in judicial custody. This led to allegations of the hacker being forced to pay off several police officials and politicians with the stolen bitcoins. Congress, then in Opposition had raised the scam, and after it came to power earlier this year formed a SIT to probe the same.

Sources said at least three prison officials, including a senior official, are likely to be questioned by the SIT soon.