Karnataka Bitcoin Case: 4 Cops Dropped From Chargesheet After Karnataka Govt Denies Nod
Last Updated:July 10, 2026, 11:14 ISTUnder Section 197 of CrPC, prosecution sanction from the competent authority is mandatory before prosecuting a public servant for acts committed during discharge of. . .
Last Updated:July 10, 2026, 11:14 ISTUnder Section 197 of CrPC, prosecution sanction from the competent authority is mandatory before prosecuting a public servant for acts committed during discharge of official dutiesRapid ReadRapid ReadSummarized by AI. +Karnataka's Home Dept denied sanction for 4 police officers (incl. a DySP) in the Bitcoin case, dropping them from the chargesheet. The SIT separately charged cyber expert KS Santosh Kumar for illegal Bitcoin transfers with hacker Srikrishna. The alleged Bitcoin scam triggered a major political controversy in Karnataka, with the Congress and BJP accusing each other of protecting influential politicians and senior police officers. Four police officers, including a deputy superintendent of police (DySP), have been dropped from the chargesheet in the Karnataka Bitcoin illegal transfer case after the home department refused to grant prosecution sanction against them. The CID Special Investigation Team (SIT), which investigated the alleged illegal detention of notorious hacker Srikrishna alias Sriki and the attempted transfer of his Bitcoins, has filed a chargesheet before the 1st ACMM Court against cyber expert KS Santosh Kumar and others. However, DySP Sridhar K Poojar and police inspectors DM Prashanth Babu, Laxmekanthiah and Chandradhar, who were earlier arrested and jailed in the case, have not been chargesheeted. Recommended StoriesStripped, Tied, Beaten: Bengaluru Baby Death Case Takes Twist As Family Claims Police Torture To Prove MurderVaishno Devi To Jagannath And Siddhivinayak: How India's Richest Temples Keep Your Donation SafeBengal Rape-Murder, Lynching & Encounter: How Baruipur May Shape CM Suvendu’s Law-And-Order DoctrineTCS-Linked Sexual Harassment, Conversion Case: Nida Khan Gets Bail Two Months After ArrestAccording to an investigating officer, the probe found that the four police officers, along with cyber expert Santosh Kumar, had allegedly attempted to transfer Bitcoins belonging to hacker Sriki. However, since the home department rejected the request for prosecution sanction, the investigating agency has been unable to proceed against them and consequently dropped their names from the chargesheet. Prosecution Sanction DeniedUnder Section 197 of the CrPC, prosecution sanction from the competent authority is mandatory before prosecuting a public servant for acts committed during the discharge of official duties. In addition, prior sanction under Section 19 of the Prevention of Corruption Act is required before a court can take cognisance of offences against government officials. Since the accused were police officers, sanction under the Karnataka Police Act was also required. Sources said the investigating agency had sought three separate prosecution sanctions from the home department which were rejected, resulting in the four officers being excluded from the chargesheet. Chargesheet Against Cyber ExpertThe chargesheet has been filed against the first accused, cyber expert and GCID Technologies owner KS Santosh Kumar. The SIT has alleged that Santosh Kumar misused the cryptocurrency wallets of hacker Sriki and Robin Khandelwal and illegally transferred Bitcoins worth several lakhs of rupees from Khandelwal’s wallet. Investigators have also cited evidence of fraud, falsification of records and other irregularities, which have been included in the chargesheet. The alleged Bitcoin scam triggered a major political controversy in Karnataka, with the Congress and BJP accusing each other of protecting influential politicians and senior police officers who allegedly benefited from hacker Sriki’s activities. The state government subsequently constituted an SIT to investigate multiple Bitcoin-related cases. The SIT found that during the CCB’s investigation into separate cases involving Sriki between 2020 and 2021, he was allegedly kept in illegal custody and Bitcoins worth Rs 1. 83 lakh were transferred from his wallet. Based on these findings, a separate FIR was registered against then CCB DySP Poojar and three police inspectors. All four officers were arrested during the investigation. Nine Bitcoin-Related Cases CompletedThe SIT has completed investigations into nine separate Bitcoin-related cases, including those registered by the CID and Cottonpet police, and has submitted its reports before the court. Sources said that in another related case, the SIT had filed a ‘B’ report after finding no evidence to substantiate allegations against Poojar and Inspector Prashanth Babu. News18 NewsletterHandpicked stories, in your inboxA newsletter with the best of our journalismAbout the AuthorRohini SwamyRohini Swamy, Associate Editor at News18, has been a journalist for nearly two decades in the television and digital space. She covers south India for News18’s digital platform. She has previously wor. . . Read MoreLocation :First Published:July 10, 2026, 11:14 ISTNewsindiaKarnataka Bitcoin Case: 4 Cops Dropped From Chargesheet After Karnataka Govt Denies NodDisclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to ourTerms of UseandPrivacy Policy. Loading comments. . . Read More