Back to the Blog Main Page
19/08/24
53
Arrest Made in BitConnect-related Kidnapping as India Aims to Recover $52 Million in Lost Investments
Authorities in India have apprehended a man linked to a significant kidnapping case tied to the infamous BitConnect cryptocurrency scam, as part of an effort to recoup lost investments. The Enforcement Directorate (ED) in Ahmedabad announced the arrest of Shailesh Babulal Bhatt, who reportedly lost substantial funds while investing in BitConnect Coin, a digital currency linked to the now-defunct BitConnect platform recognized as a global Ponzi scheme.
In pursuit of his lost capital, Bhatt, along with accomplices, allegedly abducted two individuals associated with Satish Kumbhani, the mastermind behind BitConnect. The group purportedly sought a ransom that included approximately 2,091 Bitcoin, 11,000 LiteCoin, and about $1.7 million in cash, equivalent to nearly 145 million Indian rupees. The ED’s investigation unveiled that Bhatt compensated his associates with around $34 million for their involvement in this criminal act, which he later funneled into purchasing real estate, gold, and other assets.
Arrested on August 13, Bhatt has been detained under India’s Prevention of Money Laundering Act (PMLA) and appeared before a Special Court in Ahmedabad. This arrest stemmed from two First Information Reports (FIR) concerning BitConnect filed by the State Crime Investigation Department in Surat. As part of the ongoing inquiry, the ED claims to have recovered assets worth $52 million linked to the case.
BitConnect, which commenced operations in 2016 and collapsed two years later, left thousands of investors from various nations with significant losses amounting to an estimated $2.4 billion. The platform’s founder, Satish Kumbhani, faced multiple legal challenges including a federal indictment and a lawsuit from the Securities and Exchange Commission, but his current location remains untraceable.
Several other individuals connected to the BitConnect scheme have also encountered legal repercussions. Notably, Glenn Arcaro, a prominent figure in the scheme, was sentenced to 38 months in prison for conspiracy to commit wire fraud, while John Bigatton received a conviction in Australia for providing unlicensed financial advice.
Promotions
