Indian Software Director Arrested for Alleged Crypto Fraud

Indian Director Arrested in $3M Crypto Fraud Case

Key Points:

  • Director allegedly embezzled $3M from seized crypto wallets.
  • Involvement could widen with further police and influential probes.
  • Community concerns over audit firm and law enforcement collaboration.

This arrest highlights potential mishandling of cryptocurrency assets by forensic auditors during police investigations, raising concerns over asset security and procedural integrity.

Gaurav Harish Mehta, a 31-year-old software developer and director at Sarath & Associates, is accused of diverting ₹30 crore (~$3M) during a forensic audit. Collusion involved diverted seized cryptocurrency to private exchanges.

“I was merely assisting in the investigation; instead, they labeled me a scapegoat.” – Gaurav Harish Mehta, Free Press Journal

R Lakshmi Rao, co-director at Sarath & Associates, and police personnel are under investigation. Seized devices are examined, with transactions traced. The case could broaden, affecting trust in forensic audit transparency, as highlighted by Mumbai Police.

The probe follows the 2018 GainBitcoin fraud, where investors were swindled. Suspected police and audit firm involvement raise alarms over system vulnerabilities. Device seizures could reveal transaction trails and alterations.

Legal expert Aftab Qureshi claims Mehta is falsely implicated, potentially as a scapegoat. Regulatory scrutiny might follow. Concern mounts over Sarath’s role and technological safeguards within forensic contexts.

“The investigation is likely to widen as we analyze the digital footprints linked to the transactions.” – Sangramsingh Nisandar, Times of India

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