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Karnataka High Court Grants Bail to Hacker Sriki in ₹340 Crore Cryptocurrency Money Laundering Case

Court cites delay in trial and voluminous chargesheet; bail granted with strict conditions.

ED alleges proceeds of crime worth hundreds of crores; defence highlights cooperation and prior bail in predicate offences.

By Legal Reporter

New Delhi: October 10, 2026:

The Karnataka High Court has granted bail to Bengaluru hacker Srikrishna Ramesh alias Sriki and his accountant Robin Khandelwal in a high-profile money laundering case linked to a massive cryptocurrency scam. The Enforcement Directorate (ED) alleged proceeds of crime worth over ₹340 crore, but the court observed that the trial is unlikely to conclude soon given the voluminous chargesheet and directed strict bail conditions.

Case Background

• Accused: Srikrishna Ramesh (Sriki), a Bengaluru-based hacker, and his accountant Robin Khandelwal.
• Allegations: ED claims they amassed illegal wealth through cryptocurrency scams, with proceeds of crime estimated between ₹288 crore and ₹401 crore.
• Predicate offences: Registered between 2017–2020, in which both accused had already been granted bail.
• Arrest: May 8, 2026, under the Prevention of Money Laundering Act (PMLA).

Court’s Observations

• Chargesheet size: Over 8,100 pages with 10 witnesses, making early trial completion “very remote.”
• Supreme Court precedent: Bench referred to earlier rulings where bail was granted in similar circumstances due to trial delays.
• ED’s apprehension: That accused might misuse bail or shift proceeds of crime.
• Court’s response: If they intended to misuse funds, they could have done so before arrest; no evidence of violating bail conditions in prior cases.

Bail Conditions

• Personal bond: ₹1 lakh each with two sureties.
• Restrictions:
  • Must appear regularly before trial court.
  • Cannot tamper with witnesses.
  • Cannot leave trial court jurisdiction without permission.

Enforcement Directorate’s Stand

• Proceeds of crime: Estimated at ₹340 crore involving multiple accused.
• Concern: Funds not fully traced; possibility of misuse if released.
• Counterpoint: Defence argued cooperation with investigation and highlighted delay in trial proceedings.

Broader Implications

• Cryptocurrency regulation: Case underscores challenges in tracing digital assets in India.
• Judicial backlog: Highlights how voluminous chargesheets and complex financial crimes delay trials.
• Public interest: Raises questions about enforcement capacity in tackling large-scale cyber and crypto frauds.

FAQs

Q1: Who is Sriki?

A Bengaluru-based hacker accused of amassing wealth through cryptocurrency scams, allegedly holding thousands of Bitcoins.

Q2: Why was bail granted?

Because the trial is unlikely to conclude soon due to the massive chargesheet and prior bail in predicate offences.

Q3: What conditions were imposed?

Personal bond of ₹1 lakh, two sureties, mandatory court appearances, and restrictions on travel and witness tampering.

Q4: What is the ED’s allegation?

That Sriki and associates laundered proceeds of crime worth over ₹340 crore through cryptocurrency transactions.

Q5: What does this mean for crypto regulation in India?

It highlights the urgent need for stronger frameworks to trace and regulate cryptocurrency transactions in financial crime investigations.