Indian authorities have arrested a man who allegedly kidnapped and extorted two employees of the defunct crypto platform BitConnect.
Arrest and Charges
According to a statement from the Directorate of Enforcement (ED), Shailesh Babulal Bhatt extorted 2,091 Bitcoin, 11,000 Litecoin, and $1.7 million from the kidnap victims before releasing them. The incident dates back to 2017, but authorities could only arrest Bhatt on August 13, 2024, under India’s Prevention of Money Laundering Act (PMLA). The investigation has recovered about $52 million in movable and immovable assets, and Bhatt is currently in custody.
BitConnect Incident
BitConnect, a crypto lending platform that launched in 2016, offered proprietary trading technology with guaranteed returns. However, it collapsed in 2018, leaving investors with more than $2.4 billion in losses. Global regulators have described it as a Ponzi scheme.
Victims and Consequences
Despite some convictions and prison terms for BitConnect promoters, the mastermind Satish Kumbhani remains at large. In 2023, about 800 investors received $17 million in restitution, but this accounts for only a small fraction of the lost funds.
The investigation into the BitConnect case and its repercussions is ongoing, with authorities aiming to bring all responsible parties to justice.
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