On June 17, CoinWorld reported, according to News9live, that former police chief of Bangalore, Ningappa, confessed during interrogation by the anti-corruption agency Lokayukta that he extorted government officials by impersonating anti-corruption officials and converted the illicit funds into Bitcoin. The special court has ordered his detention until June 30. The case involves two ministerial assistants, but their identities have not yet been disclosed. Investigations show that Ningappa used his police background to forge identities and committed extortion in several locations, including Seshadripuram. Although his lawyer has applied for bail, the court has requested the prosecution to respond first.
Analysts point out that this case could trigger a trust crisis for the ruling party in the country—if it is confirmed that ministerial officials are involved, it may lead to government upheaval. Ningappa was dismissed from the police force several years ago but operated for a long time by exploiting loopholes in the system, with multiple police stations across the state registering related cases. Lokayukta is currently tracing the flow of Bitcoin and the network of accomplices.