Indian Investor Arrested in BitConnect Kidnapping Case

In a dramatic development highlighting the extent of cryptocurrency fraud, Shailesh Babulal Bhatt from Gujarat, India, has been detained for his involvement in the kidnapping of two individuals linked to Satish Kumbhani, the founder of the notorious BitConnect platform.

BitConnect, once celebrated in the crypto community for its promises of extraordinary returns through a lending scheme and trading bot, was exposed as a massive Ponzi scheme in 2018.

The scheme defrauded investors of approximately $2.4 billion before regulatory action led to its shutdown in the U.S. The scandal’s repercussions continue to affect many, with Bhatt’s case illustrating the extreme measures some victims have taken to seek restitution.

Bhatt and his accomplices allegedly abducted the employees in a bid to recover losses from the BitConnect scheme. They extorted a staggering amount of 2,091 Bitcoins, 11,000 Litecoins, and nearly $1.7 million in cash, totaling around $146.8 million at current rates.

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The Enforcement Directorate of India has intervened, seizing assets worth about $52 million believed to have been purchased with the extorted funds.

Bhatt’s arrest on August 13 marks a significant step in the ongoing investigation, which began with two reports filed in 2022. Authorities are also searching for Kumbhani, who remains at large as the probe continues.

Alexander Stefanov