In Gujarat, India, 14 individuals, including 11 police officials and a former legislator, have been sentenced to life imprisonment for kidnapping and extorting cryptocurrency.
Trial and Defendants
A special anti-corruption court in Ahmedabad found 14 individuals guilty of conspiracy, kidnapping for ransom, illegal detention, and assault. The defendants included former Amreli district police superintendent Jagdish Patel and ex-MLA Nalin Kotadiya, along with 10 other officers. They were also convicted under the Prevention of Corruption Act for the abuse of public office.
Circumstances of the Cryptocurrency Kidnapping
The case revolved around Surat-based businessman Shailesh Bhatt, who partially recovered investments after the collapse of BitConnect – a crypto scheme that defrauded investors of over $900 million. Kotadiya and senior police officials plotted to seize Bhatt's bitcoin. On February 11, 2018, Bhatt was abducted and held at a farmhouse near Gandhinagar, where he was beaten and forced to admit receiving 752 bitcoin.
Reactions and Consequences of the Case
Bhatt later filed a complaint with India’s home ministry, triggering an investigation that led to the arrest of 15 individuals. The trial stretched over nearly six years, with 173 witnesses presented. The verdict highlights the risks associated with digital asset-related crimes in India and the need for regulatory oversight in the cryptocurrency space.
The sentencing of the 14 defendants represents one of the harshest punishments in India to date for cryptocurrency-linked crimes, emphasizing the importance of proper oversight and investor protection in digital finance.
