The raids were conducted under the provisions of the Prevention of Money-Laundering Act, 2002 (PMLA), based on multiple FIRs and chargesheets filed earlier by the Karnataka Police. According to officials, the investigation pertains to alleged offences including hacking, theft of bitcoins, extortion, and violations under the IT Act and NDPS Act.

The ED confirmed that searches were carried out at residential and associated premises of several individuals. These included locations linked to N A Haris, a sitting MLA from Shanti Nagar constituency, as well as his sons Mohammed Haris Nalapad and Omar Farook Nalapad.

Officials stated that the probe also covered premises associated with Aqeeb Khan, who is reportedly linked to political circles in the state. The agency is examining financial trails and alleged proceeds of crime generated through illegal cryptocurrency activities.

Sources indicated that the raids are part of a wider investigation into suspected money laundering involving digital assets, commonly referred to as virtual digital assets (VDAs), including bitcoin.

The case centres around Srikrishna Ramesh, also known as Sriki, who has been accused of orchestrating a sophisticated cybercrime network. According to earlier police chargesheets, he allegedly hacked multiple national and international websites, including an online gaming platform in 2021, and unlawfully accessed sensitive data and cryptocurrency wallets.

Investigators claim that Sriki stole bitcoins from a cryptocurrency exchange and used the funds for various illegal activities. These reportedly include financing drug procurement and trafficking, with transactions routed through cryptocurrency channels to obscure their origin.

Authorities have described the alleged operation as a multi-crore racket involving hacking, digital theft, and financial laundering.

In an official statement, the ED detailed the alleged modus operandi followed by the accused individuals. This included hacking websites and digital wallets to steal virtual assets, converting stolen cryptocurrency into fiat currency through trading platforms, and transferring the proceeds through multiple bank accounts to conceal the source.

The agency further alleged that the funds were ultimately used for personal gain by Sriki and his associates.

The ED stated that its investigation has revealed that certain individuals, including Mohammed Haris Nalapad and Omar Farook Nalapad, were 'close associates' of Sriki and are suspected to be among the beneficiaries of the proceeds of crime.

The case originates from multiple FIRs registered by Karnataka Police, followed by a detailed chargesheet outlining offences under various sections of the Indian Penal Code and the Information Technology Act. The ED subsequently initiated a parallel probe under PMLA to track and investigate money laundering aspects.

While the agency has made claims regarding financial links and beneficiaries, no formal convictions have been reported in connection with the case at this stage. The searches are part of an ongoing investigation, and officials have indicated that further action will depend on the findings from seized documents and digital evidence.

The involvement of a sitting legislator and individuals linked to political families has added a significant dimension to the case. However, no official response from N A Haris or his family was immediately available at the time of reporting.

Cases involving cryptocurrency fraud and cybercrime have seen a rise in recent years, prompting increased scrutiny by enforcement agencies. The current investigation highlights the challenges faced by authorities in tracking digital financial crimes and ensuring regulatory compliance in the rapidly evolving crypto ecosystem.

The ED's raids across Bengaluru mark a significant step in its ongoing probe into an alleged crypto fraud and money laundering network. As the investigation progresses, more details are expected to emerge regarding the extent of the financial transactions and the role of individuals involved. The case underscores the growing complexity of cyber-enabled financial crimes and the need for robust enforcement mechanisms.