Bengaluru: Barely four months after BJP veteran BS Yediyurappa stepped down — making way for the then Home Minister Basavaraj Bommai's elevation to helm of Karnataka — the political sphere of the state is experiencing a deja vu moment. Thanks to the ongoing Bitcoin Scam, speculations are rife about a possible exit of Bommai even as he welcomes any scrutiny into the alleged involvement of BJP in facilitating a cover-up of, perhaps, one of the largest of its kind in the world.
What began as a routine drug bust snowballed into unexpected proportions, so much so, in the course of the investigation, the main accused in the case revealed details of potential financial fraud that ran into several hundred million dollars. Although the allegations surrounding the scam have not been able to put BJP entirely on the defensive, some party insiders have misgivings about the state leadership's 'approach' to the allegations.
How it all started
The main accused in the case Srikrishna alias Sriki, a resident of Jayanagar in Bengaluru, was arrested in a drug case under the Narcotic Drugs & Psychotropic Substances (NDPS) Act.
Sriki, in a voluntary statement to the police, claimed that he was the main man behind the hack and subsequent stealing of Bitcoins from the Caribbean-based Bitfinex Crypto exchange in 2016 — an incident that incurred huge losses to crypto investors.
Ever since the details of the case came out, reports of US investigative agencies warning the Indian counterparts about the movement of proceeds from the Bitfinex hack, and a subsequent cover-up of the matter are abuzz in political circles.
AICC leader Randeep Singh Surjewala, speaking at a press conference in Bengaluru Saturday sought a judicial probe into the alleged Bitcoin scam. The AICC general secretary, however, refrained from accusing the BJP of direct involvement in the matter. On the other hand, the Congress' state leadership did not want to miss an opportunity to try and put the ruling party on the backfoot.
"BJP leaders, their children and officials are involved in this scam. The government said the case has been handed over to the Enforcement Directorate. Where is the order?" Congress MLA and spokesperson Priyank Kharge asked.
Whale Alert, a whistleblower handle on Twitter that tracks large scale cryptocurrency transactions, had flagged that Bitcoins from the 2016 hack of Bitfinex Crypto exchange were transferred on 1 December 2020, and on 14 April 2021. However, on both occasions, according to authorities, Sriki was under legal custody.
Discord in Karnataka BJP?
The opposition parties, understandably, have been targeting the BJP state government ever since the alleged scam emerged. However, the cadres of the party in Bengaluru, too, have expressed their reservations on how the government has been handling the matter.
"Chief Minister Basavaraj Bommai's approach to the matter is 'out of the ordinary. State elections will be held in 2023. Can the party take a risk of leadership change? Nevertheless, politics is not stagnant," a source in BJP told this reporter.
Signalling the continuation of the discord within the party ranks, the source said that some insiders 'believe' in the prospects of a leadership change, referring to the BJP's discourse in Uttarakhand.
Shettar-BL Santhosh meeting whip up speculation
Former Chief Minister Jagadish Shettar's visit to Delhi has created room for speculation. It was told that Jagadish Shettar Delhi visit is on personal work.
Shettar earlier had announced that he won't be a part of Bommai's cabinet and will serve the party and continue to be an MLA and not a minister.
Meeting of BJP National General Secretary BL Santhosh and Shettar in Hubli during the Hanagal-Sindagi bypolls and former CM BS Yediyurappa and son BY Vijayendra's recent alignment with Shettar are dubbed as coming together of anti-Bommai camps.
While the state BJP is vying to mitigate the "Bitcoin scam" situation, sources said attempts to change the leadership will be taken up only after the MLC elections are due soon. Insiders believe that if Bommai could pass the test of MLC polls, ie; if BJP manages to get more seats they say he could survive.
