Indian authorities have arrested Shailesh Babulal Bhatt in connection with the defunct cryptocurrency platform BitConnect, which allegedly raised $2.4 billion from investors.
The Arrest of Shailesh Babulal Bhatt
Bhatt, reportedly seeking to recover his lost investments, has been apprehended by the Indian Enforcement Directorate (ED) under the Prevention of Money-Laundering Act (PMLA).
Background of the BitConnect Scam
BitConnect, launched in 2016, posed as a high-yield investment program offering returns of up to 1% daily through its native token, BitConnect Coin. However, it was a classic Ponzi scheme.
Legal Actions and Consequences
The scam has led to notable legal actions against promoters. Glenn Arcaro, a U.S. promoter, pleaded guilty to wire fraud conspiracy in 2021, while John Bigatton was convicted in 2024 by an Australian court.
The arrest of Bhatt and ongoing legal actions highlight the extensive repercussions of the BitConnect fraud, which left investors worldwide with significant losses.
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