India Seizes $190 Million in Cryptocurrency Linked to Bitconnect Scheme

According to Odaily, Indian authorities have seized nearly $190 million in cryptocurrency connected to the Bitconnect Ponzi scheme, which was dismantled in 2018. The scheme resulted in losses of approximately $2.4 billion for 4,000 investors across 95 countries. Bitconnect, launched in 2016, collapsed in 2018. The founder, Satish Kumbhani, was charged by the U.S. Department of Justice in February 2022 for establishing a global network of promoters who were paid commissions to promote the scheme. In August of last year, the Indian Enforcement Directorate (ED) reported the arrest of Shailesh Babulal Bhatt from Gujarat. Bhatt was accused of kidnapping, extortion, and violating anti-money laundering laws in a major cryptocurrency-related crime exceeding $144 million. Following a complaint filed by Surat police against Bitconnect Coin promoter Satish Kumbhani, the Indian Ministry of Justice launched a money laundering investigation, leading to Bhatt's detention. It is alleged that after Kumbhani shut down the Bitconnect platform in January 2018, he deceived investors and fled. Bhatt, who had invested in Bitconnect, kidnapped two of Kumbhani's employees to recover his funds, extorting 2,091 Bitcoins, 11,000 Litecoins, and cash amounting to 145 million rupees, now valued at 12.325 billion rupees. Bhatt also distributed 2.89 billion rupees of the extorted funds among accomplices for acquiring various assets.