Bitrabo Editorial
An Indian police officer, Chandrahar SR, was recently arrested for siphoning off Bitcoin worth INR 1.8 crores ($216,000) during an investigation into a cryptocurrency scam dating back to 2017.
The Exploitative Breach
Chandrahar, a former inspector with the Central Crime Branch (CCB), abused his authority to access and transfer Bitcoin from a hacker’s digital wallet involved in the ongoing probe of high-profile cryptocurrency exchange hacks by Srikrishna Ramesh and Robin Khandelwal.
Despite the duo’s cybercrime earnings of around $660,000, Chandrahar’s actions breached legal and ethical conduct expectations. A Special Investigation Team discovered the misconduct, revealing evidence mishandling by Chandrahar and others.
Their manipulation of wallet access and fund transfer jeopardized the investigation’s integrity. Chandrahar’s arrest followed a failed anticipatory bail attempt, with charges including illegal confinement, breach of trust, and evidence destruction.
This case not only betrayed public trust but also highlighted challenges in enforcing laws around digital assets.
India’s Crypto Regulations
India’s strict crypto stance was shown by recent hefty taxation on crypto transactions and actions against global crypto exchanges. The Financial Intelligence Unit (FIU) enforced compliance notices on platforms in December, leading to URL blocks on nine major exchanges.
Responding to regulatory pressure, Binance complied with anti-money laundering laws in South Asia, paying a $2 million fine and adjusting its operations to Indian standards.
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