Karnataka High Court Grants Bail To 'Hacker' Sriki In Cryptocurrency Scam Case, Says No Immediate Chance Of Trial Completion

The Karnataka High Court has granted bail to 'hacker' Srikrishna Ramesh @ Sriki and his accountant Robin Khandelwal in a PMLA case pertaining to alleged cryptocurrency scam, observing that chances of the trial being completed soon were remote given that prosecution documents run into thousands of pages and the case remains at a pre-cognizance stage.

Reportedly, the ED has alleged laundering of funds generated by Sriki by hacking of multiple cryptocurrency exchanges, poker, and gaming websites. As per reports, ED filed a prosecution complaint against Sriki, hKhandelwal, as well as other accused. 

“The present case is at pre-cognizance stage before the Trial Court. Learned Counsel for the petitioners has brought to the notice of this Court that documents in the present case runs upto 8103 pages and 10 charge-sheet witnesses have been cited. Therefore, chances of trial being completed and case being disposed of in the near soon is very remote,” Justice S Vishwajith Shetty said, while allowing the petitions filed by the two men, accused of the offences under Sections 3 and 4 of the PMLA, seeking regular bail.

Rejecting the respondent's argument that the accused might shift or misuse undiscovered proceeds of crime if enlarged on bail, the High Court noted, “The present case is registered in the year 2021 and petitioners were arrested only on 08.05.2026. If the petitioners or other accused have parked the sale proceeds safely and if they intended to misuse or shift the same, they could have very well done the same before they were arrested in the present case.”

It added, “There is no allegation against the petitioner that they have misused the bail conditions in any one of the cases registered for the predicate offences. Therefore, the apprehension now expressed by the learned Counsel for the respondent as aforesaid, does not appeal to the mind of this Court.”

The High Court also placed reliance on the Apex Court ruling V. Senthil Balaji vs Deputy Director, Directorate of Enforcement (2024), wherein the Supreme Court had ruled that “bail is the rule, and jail is the exception” and noted that the stringent provisions regarding the grant of bail under PMLA cannot become a tool to incarcerate the accused without trial for an unreasonably long time.

The Court accordingly held, “Considering the aforesaid aspects of the matter, I am of the opinion that the prayer made by accused nos.1 & 3 in the above petitions for grant of regular bail is required to be answered affirmatively, subject to appropriate conditions.”

Allowing the criminal petitions, the High Court directed that the petitioners be released on bail upon executing a personal bond of Rs 1 lakh each with two sureties for the like sum, subject to conditions including a prohibition on leaving the Trial Court jurisdiction without prior permission.

Background

The case arose from an Enforcement Case Information Report (ECIR) filed by ED against the petitioners under PMLA in 2021.

Cases relating to predicate offences were registered against the petitioners between 2017 and 2020, though they secured bail in all of them. In 2020, an ECIR was registered wherein the petitioners were summoned and subsequently released on regular bail. In the present 2021 ECIR, the petitioners were arrested on May 8, 2026. After the Special Judge rejected their bail plea, the petitioners approached the High Court.