The Karnataka High Court has granted bail to Srikrishna Ramesh, known as Sriki, and Robin Khandelwal in a money laundering case linked to an alleged cryptocurrency scam. Justice S Vishwajith Shetty noted that the case record runs to 8,103 pages and the prosecution has listed 10 witnesses, raising doubts about an early conclusion to the trial. The Enforcement Directorate had opposed bail, citing alleged proceeds of crime worth around ₹401 crore and concerns that the assets could be moved. Bail does not determine guilt or innocence.
Karnataka High Court Grants Bail to Sriki in Money Laundering Case
The Karnataka High Court granted bail to Srikrishna Ramesh alias Sriki and Robin Khandelwal in a money laundering case linked to an alleged cryptocurrency scam.
After hearing the petitions filed by Srikrishna Ramesh and Robin Khandelwal, the Karnataka High Court pronounced its decision on the bail for Sriki on October 7, 2026, with Justice S Vishwajith Shetty.
The Directorate of Enforcement (ED) had registered the case in connection with a cryptocurrency scam controversy, with the agency alleging proceeds of crime of ₹401 crore.
Justice Shetty pointed out that the documents in the case were 8,103 pages long and the prosecution had named 10 witnesses for the trial.
Hence, the order stated that it seemed improbable that the proceedings would be completed and the case disposed of shortly thereafter.
Srikrishna Ramesh aka Sriki and Robin Khandelwal were taken into custody on May 8, 2026, in the money laundering case registered in 2021.
The petitioners argued that the alleged predicate offences in the associated cases were instituted between 2017 and 2020 and they had already been granted bail.
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ED raises concerns over alleged ₹401 crore proceeds
The Directorate of Enforcement (ED) opposed the bail applications on the ground that the accused may misuse their release and move the alleged proceeds of crime.
The ED in its submissions had claimed that proceeds of crime worth around ₹401 crore were allegedly parked at an undisclosed location, raising concerns that such assets could be moved.
The agency’s concern was part of its plea against the grant of bail to the two petitioners in the money-laundering case pending proceedings.
However, Justice Vishwajith Shetty noted the timing of the arrests and the absence of allegations of violations of earlier bail conditions.
Although the money laundering case was registered in 2021, Sriki and Khandelwal were arrested only on May 8, 2026, the judge said.
The court said if the petitioners or other accused had any intention to misuse or divert the alleged sale proceeds, it could have been done prior to their arrests.
Court weighs earlier bail and trial timeline
Justice Shetty also observed, 'There is no allegation that either of the petitioners had in the past misused the conditions of bail in the cases relating to the predicate offences connected with the controversy.'
The court was not sufficiently convinced by the ED’s apprehension of potential misuse of bail given those circumstances to deny the relief.
The court later allowed Srikrishna Ramesh and Robin Khandelwal on bail in the money-laundering case.
The order does not end the underlying criminal proceedings, nor does it decide the final disposition of the charges of cryptocurrency scam or alleged proceeds of crime.
The development is notable because the large case record and number of witnesses referenced could result in a lengthy trial, possibly extending proceedings over a significant period of time.
Sprouts News will be monitoring developments in the case, including any further court proceedings, enforcement actions and any subsequent orders relating to the alleged cryptocurrency-related offences.
For now, Sriki and Robin Khandelwal can remain on bail as the Karnataka High Court’s order has kept the ED’s allegations and the underlying proceedings pending before the courts.
