A Bengaluru court has rejected the regular bail application of businessman Sunish Hegde, an associate of alleged hacker Srikrishna Ramesh alias Sriki, observing that the investigation indicates his active involvement in an alleged cryptocurrency money laundering network.
Court cites evidence of active involvement
Rejecting Hegde’s bail plea on June 25, the Principal District and Sessions Court noted that the material collected by the Enforcement Directorate (ED) prima facie suggested that his role was not merely peripheral but was connected to the alleged proceeds of crime.
The court observed that the evidence indicated Hegde’s association with the principal accused and other individuals allegedly involved in laundering funds generated through cybercrimes.
ED links crypto wallet to accused
According to the ED, Hegde was arrested on May 8 along with alleged hacker Sriki and accountant Robin Khandelwal in connection with a money laundering probe linked to multiple hacking incidents that allegedly occurred between 2017 and 2020.
Investigators told the court they had traced transactions involving around 3,52,000 USDT (Tether), valued at approximately Rs 3.3 crore, in a cryptocurrency wallet allegedly linked to Hegde through a Binance account. The agency argued that the digital evidence contradicted Hegde’s claim that he was unfamiliar with cryptocurrencies.
Investigation continues
Hegde had argued that the ED was reopening matters that had remained dormant for several years and that the prosecution primarily relied on statements recorded under the Prevention of Money Laundering Act (PMLA). However, the court held that the material placed before it warranted continued investigation at this stage.
The ED alleges the case involves a wider conspiracy related to hacking cryptocurrency exchanges and online gaming platforms, theft of virtual digital assets, cyber fraud and laundering of illicit proceeds. The investigation remains ongoing.