4 min readBengaluruUpdated: Jun 28, 2026 11:26 AM IST
An Enforcement Directorate (ED) probe into the alleged laundering of money stolen online from cryptocurrency exchanges and gaming websites by international hacker Srikrishna Ramesh alias Sriki, 32, has uncovered prima facie evidence linking Bengaluru businessman Sunish Hegde, 34, to the proceeds of crime, a Bengaluru court ruled Thursday.
Rejecting Hegde’s regular bail application on June 25, the Principal District and Sessions Court in Bengaluru observed that the materials collected during the money laundering investigation indicate his active involvement in the illicit operation.
“On the contrary, the materials collected during investigation prima facie indicate his involvement in activities connected with the proceeds of crime and disclose his association with the principal accused and other participants in the alleged laundering process,” the court noted, adding that Hegde’s role cannot be characterised as “peripheral.”
Hegde, who operates gambling and poker joints in Karnataka, was arrested by the ED on May 8 alongside prime accused Sriki and his accountant Robin Khandelwal, 32. The anti-money laundering agency is tracking various cyber crimes committed by the syndicate between 2017 and 2020.
In his bail petition, Hegde contended that the ED was dragging up matters that had remained dormant for over five years since the registration of its initial case in 2021. He further argued that he lacked familiarity with cryptocurrencies and claimed the prosecution’s case relied entirely on statements recorded under Section 50 of the Prevention of Money Laundering Act (PMLA).
However, the ED countered this defence by presenting digital evidence of a cryptocurrency wallet found on a mainstream trading platform. Following Hegde’s arrest, investigators discovered transactions totalling approximately 3,52,000 USDT (Tether), valued at nearly Rs 3.3 crore, tied to a Binance account in his name.
The ED told the court that the “case arises out of a large-scale and organised criminal conspiracy involving hacking of websites and cryptocurrency exchanges, theft of Virtual Digital Assets (VDAs), cyber fraud, extortion, cheating and laundering of the proceeds generated therefrom.
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The court also noted the ED’s arguments that 3,52,000 of USDT was found in a Binance account of Hegde’s after his arrest, disproving the claim of lack of crypto usage, and that the hacker Sriki and his associates had been continuing with hacking of gambling and gaming platforms, stealing databases and indulging in the unlawful utilisation of such data.
“The petitioner seeks to contend that the ownership and authenticity of such material are matters still under investigation. However, the very fact that such material has emerged during investigation constitutes a relevant circumstance which cannot be brushed aside while assessing the existence of a prima facie case under the Act,” the court said.
“In offences involving cryptocurrency assets and complex financial structures, the investigation often unfolds over a period of time, and the timing of arrest by itself cannot be a determinative factor for grant of bail,” the court pointed out, sustaining the ED’s argument that tracking the exact movement and layering of the funds requires custody.
Anticipatory bail plea of suspect Prasidh Shetty rejected
The principal session court Thursday also rejected an anticipatory bail plea filed by Prasidh Shetty, an associate of Sunish Hegde and Sriki, who the ED also accuses of being a beneficiary of the money stolen or extorted by the hacker from crypto exchanges and gaming websites.
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The ED has stated that Prasidh Shetty and Sunish Hegde had received funds amounting to 60.6 Bitcoin (then worth Rs 1.14 crore) that were stolen from the Unocoin crypto exchange in Tumkur, Karnataka, by Sriki in June 2017.
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