Cryptocurrency Heist Leaves Bengaluru Businessman ₹2 Crore Lighter

In Bengaluru, a businessman named Shriharsha V suffered a significant financial loss of ₹2 crore during a cryptocurrency transaction. Shriharsha had collected the funds to import machinery from Germany for his new business venture. He intended to convert the cash into cryptocurrency to facilitate the payment to the machinery supplier. The incident occurred at a shop called AK Enterprises near the MS Palya signal, Vidyaranyapura, around 4:30 pm.

According to Shriharsha's account, two individuals, Benjamin Harsha and Rakshith, had promised to convert the cash into USDT, a globally popular stablecoin used for trades and payments. However, during the transaction, five to six men rushed into the shop, with one of them brandishing a knife. The armed individual ordered Shriharsha and the converters to fill the cash into a bag and hand it over to them. Shriharsha reported that the robber with the knife struck him with the knife’s handle before fleeing the scene.

Following the heist, Benjamin Harsha and Rakshith also ran away, raising suspicions about their potential involvement in the crime. The police have registered a case for dacoity under BNS section 310 (2) and are investigating the incident. Benjamin Harsha and Rakshith are expected to be questioned regarding their possible role in the robbery. The police are also considering the possibility that Shriharsha might have planned the robbery himself.

Shriharsha was the owner of Aerivon Oxygen Pvt Limited, but the money lost in the theft was intended for a new cold-pressed oil business. He had collected the funds from friends and other connections to start this venture. The payment for the machinery was to be made in USDT, and Shriharsha had contacted Harsha and Rakshith through mutual friends to facilitate the conversion of the collected cash into USDT.

This incident underscores the risks associated with cryptocurrency transactions and the need for clear regulations to curb growing crypto crime. India, which has topped the crypto adoption index in recent years, lacks proper rules and regulations for digital assets. As a result, many cryptocurrency holders in India prefer offshore exchanges to avoid unwanted consequences. The government does not legally recognize Bitcoin and other cryptocurrencies, and the nation imposes high taxes on income generated from digital assets and blockchain-based currencies. This regulatory vacuum creates an environment where such crimes can occur, highlighting the urgent need for comprehensive regulations to protect investors and ensure the security of cryptocurrency transactions.