In relation to the infamous BitConnect Ponzi scheme, which misled thousands of investors prior to its fall in 2018, Indian police have seized around $190 million worth of cryptocurrencies.
Under continuous investigation into fraudulent securities investments, Ahmedabad’s Enforcement Directorate (ED) conducted the operation and discovered the illegal monies. Officials said BitConnect drew investors with promises of large returns only to transfer money into accounts under control by its operators.
Apart from the crypto assets, authorities also seized other items, including an SUV, modern gadgets, and almost ₹13,50,500 ($15,582) in cash. The seizures happened during the February 11 and 15 raids carried out in Gujarat.
Launched in 2016, BitConnect attracted fast popularity by providing high-yield investment possibilities. But the program fell apart in 2018, leaving an estimated 4,000 investors spread over 95 countries with overall losses more than $2.4 billion.
Satish Kumbhani, the brains behind BitConnect, had earlier been charged by the U.S. Department of Justice in 2022. Authorities claim he built a worldwide network of promoters using commission-based recommendations to draw in fresh capital.
Between November 2016 and January 2018, the scheme is thought to have drawn large sums of money from investors all around, including those in India. Some victims turned to extreme actions in search of their returns on investments. Allegedly kidnapping two BitLink associates in August 2024, Shailesh Babulal Bhatt allegedly extorted Bitcoin, Litecoin, and over $1.7 million in cash.
With ongoing investigations, authorities remain focused on tracing additional assets and holding those responsible accountable for the extensive financial fraud. The case highlights the growing scrutiny of cryptocurrency-related scams and the efforts to bring justice to defrauded investors.
