💸 How a Fake Officer Used Crypto to Run a ₹4 Crore Extortion Racket in Karnataka. By ChainFabricNews

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Image source: The Economic Times

In a story that sounds more like a crime thriller than real life, a former constable in Bengaluru managed to scam crores of rupees by pretending to be a senior anti-corruption officer — and then laundered the money using cryptocurrency.

Meet Ningappa, the man at the center of one of Karnataka’s most shocking extortion scams in recent years.

🎭 The Conman Behind the Uniform

Ningappa wasn’t just another fraudster. He used to be a police constable who was dismissed from duty years ago. But he didn’t stop there. With a little tech and a lot of guts, he started impersonating high-ranking Lokayukta officers — officials who are supposed to catch corruption, not commit it.

Using apps like WhatsApp and even Truecaller, Ningappa created fake identities. He called government employees, mostly from departments like the RTO and excise, and threatened them with Lokayukta raids. Of course, he offered them a way out — by paying him “under the table.”

Some victims paid ₹20,000, others paid up to ₹25 lakh.

🪙 Crypto: The Modern Money Laundering Tool?

Here’s where it gets even more interesting.

Instead of keeping the cash in bank accounts, Ningappa moved it into cryptocurrency wallets. Investigators later found 13 crypto wallets linked to him and his close associates — some even under the names of police officers.

He used platforms like Binance and Bitget to store and convert the money into digital currencies, making it difficult to trace.

Total value? Over ₹4.15 crore.

The money trail eventually led to the doorstep of a senior IPS officer — Srinath Mahadev Joshi. While he has denied all charges and is currently seeking anticipatory bail, the investigation is far from over.

👮‍♂️ The Fallout and What It Means

As the scam came to light, the Lokayukta — Karnataka’s anti-corruption agency — began facing tough questions. How did a dismissed constable access so much information? Were insiders helping him?

The Lokayukta chief, Justice B.S. Patil, responded strongly, calling for full accountability. He’s even planning to introduce a judicial-led internal vigilance system to prevent such breaches in the future.

🔍 Lessons from the Scam

This case has brought to the surface several urgent issues:

  • Crypto can be misused: While cryptocurrency has many benefits, it can also be used for illegal financial activities due to its decentralized nature.

  • Need for better regulation: India is still building its crypto laws. Cases like this show why strong rules and real-time tracking systems are essential.

  • Trust in institutions: When agencies meant to fight corruption get caught up in scandals, public trust takes a serious hit.

✅ Final Thoughts

The Bengaluru Lokayukta scam is a wake-up call, not just for law enforcement but for all of us. Technology is evolving fast, and so are the people misusing it. Whether it’s fraud, cybercrime, or crypto laundering — the lines are getting blurred.

But with honest investigation, better digital oversight, and transparent systems, there’s still hope that justice can catch up.

 

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