In a shocking incident that underscores the risks of large cash transactions in cryptocurrency deals, a Bengaluru businessman was allegedly robbed of Rs 2 crore while attempting to convert the cash into digital currency on June 25. The victim, 33-year-old Shriharsha V from Kengeri, told police he had planned to use the funds to import machinery from Germany for a new business venture.
The incident unfolded at a shop named AK Enterprises, located near the MS Palya signal in Vidyaranyapura, northern Bengaluru. Shriharsha arranged to meet two men, identified as Benjamin Harsha and Rakshith, who had promised to convert his cash into USDT, a stablecoin pegged to the U.S. dollar, to facilitate his international payment.
Violent Robbery in Broad Daylight
According to Shriharsha’s statement to the police, he and the two men were counting the cash at around 4:30 p.m. when five to six individuals stormed into the shop wielding knives. The attackers allegedly ordered the group to fill the money into a bag and threatened them with violence.
“They hit me with a knife handle and took all the cash,” Shriharsha recounted. After seizing the money, the assailants fled the scene. To his surprise, Harsha and Rakshith also disappeared immediately after the incident, raising suspicions of their involvement.
Investigation Underway
Vidyaranyapura police registered a First Information Report (FIR) for dacoity under BNS Section 310(2), which deals with armed robbery involving five or more persons. A police officer involved in the investigation confirmed that Harsha and Rakshith would be questioned to determine whether they orchestrated the robbery.
“The possibility of the victim staging the entire incident cannot be ruled out at this stage,” the officer added, highlighting the complexities often seen in cases involving large sums of unaccounted cash and cryptocurrency transactions.
Business Plans and Financial Details
The FIR details Shriharsha’s business activities, revealing he owns Aerivon Oxygen Pvt Ltd and had plans to diversify by launching a cold-pressed oil business. To fund the import of specialised machinery from Germany, he borrowed money from friends, raising Rs 2 crore in cash.
Given the nature of the payment, he sought to convert the amount into USDT to transfer the funds abroad. Shriharsha said he was introduced to Harsha through mutual friends who claimed he could facilitate cryptocurrency conversions, a common but risky practice in informal markets.
Crypto Transactions in the Shadows
This incident highlights a growing trend in India’s cryptocurrency space, where many transactions occur off the radar of formal financial channels, often involving large sums of cash and informal brokers. These deals are driven by the desire to avoid traditional banking paperwork or international transfer restrictions but expose parties to significant legal and personal risks.
Despite India’s evolving regulatory landscape for digital assets, crypto-to-cash conversions continue to thrive underground, providing fertile ground for scams and violent crimes. Experts warn that engaging in high-value crypto transactions outside regulated exchanges significantly increases the likelihood of theft or fraud.
Police Caution and Next Steps
The Bengaluru police have urged citizens to avoid informal cryptocurrency transactions, especially those involving large cash payments. Investigators are analysing CCTV footage from the vicinity and gathering digital evidence to trace the suspects.
As the investigation progresses, police are keen to establish whether the robbery was an opportunistic crime or a premeditated conspiracy involving Harsha and Rakshith. Meanwhile, Shriharsha’s case serves as a stark reminder of the perils of operating in unregulated crypto markets, where a single misstep can lead to devastating losses.
With cryptocurrency adoption rising in India, this case could reignite discussions around the need for tighter oversight and better safeguards for digital asset transactions to protect individuals and maintain market integrity.
