Indian authorities have apprehended Shailesh Babulal Bhatt, who is accused of kidnapping two individuals linked to the notorious BitConnect Ponzi scheme in a desperate attempt to recover his lost investment. Bhatt, who allegedly lost a significant amount in the BitConnect scam, reportedly orchestrated the kidnapping of two employees associated with the platform’s creator, Satish Kumbhani.
According to the Enforcement Directorate (ED) in Ahmedabad, Bhatt and his accomplices extorted 2,091 Bitcoin, 11,000 Litecoin, and roughly $1.7 million (145 million Indian rupees) in exchange for the victims’ release. Bhatt allegedly paid his accomplices $34 million (2.9 billion Indian rupees) for their involvement in the crime, with the proceeds used to acquire properties, gold, and other assets.
Bhatt was arrested on August 13 under India’s Prevention of Money-Laundering Act (PMLA) and is currently in ED custody. The investigation into his actions was prompted by two prior reports about BitConnect from the State Crime Investigation Department in Surat.
Authorities have already seized assets valued at $52 million (4.4 billion Indian rupees) as part of the ongoing investigation. The collapse of BitConnect in 2018, which defrauded 4,000 investors across 95 countries of approximately $2.4 billion, continues to have far-reaching consequences.
BitConnect founder Satish Kumbhani remains at large, facing charges from both the US Department of Justice and the Securities and Exchange Commission. Other key figures in the scheme, including Glenn Arcaro and John Bigatton, have been convicted and sentenced for their roles in the fraudulent operation.
This incident highlights the enduring impact of BitConnect’s collapse and serves as a grim reminder of the risks associated with unregulated crypto ventures.
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