Shailesh Babulal Bhatt, a resident of Gujarat, was arrested by the Enforcement Directorate (ED) in connection with a cryptocurrency extortion case valued at over ₹1,200 crore (approximately $148 million).
Cryptocurrency Extortion Case
Shailesh Babulal Bhatt, an investor in the cryptocurrency platform Bitconnect Coin, decided to take drastic steps to recover his lost money. After the platform was abruptly shut down in January 2018 by its organizer Satish Kumbhani, Bhatt allegedly kidnapped two of Kumbhani’s employees, demanding ransom in cryptocurrency and cash.
Investigation and Arrest
According to the ED, Bhatt extorted 2,091 Bitcoins ($125 million), 11,000 Litecoins, and ₹14.50 crore in cash, which is currently valued at ₹1,232.50 crore ($146 million). The investigation began following complaints filed by Surat Police CID against Satish Kumbhani. Bhatt was taken into custody earlier this week.
Consequences and Next Steps
The investigation revealed that ₹289 crores ($1.7 million) of the extorted money was shared with Bhatt’s accomplices, who helped in carrying out the kidnappings and extortions. The money was used to purchase properties, gold, and other valuable items. The ED stated that Bhatt's arrest is part of a larger effort to tackle money laundering linked to cryptocurrency scams.
The case of Shailesh Babulal Bhatt highlights the importance of combating criminal schemes in the cryptocurrency sector. The ongoing investigation by the ED aims to uncover how the extorted money was used and where it was hidden.
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