- The Indian Directorate of Enforcement arrested an individual for kidnapping BitConnect employees to reclaim his losses in the Ponzi scheme.
- Shailesh Babulal Bhatt demanded and received $125 million in ransom to release the victims.
Indian Authority, the Directorate of Enforcement (ED), arrested Shailesh Babulal Bhatt for his involvement in kidnapping two BitConnect employees to reclaim his losses from the then-operating BitConnect platform.
The now-defunct BitConnect offered BitConnect tokens (BCC) in exchange for bitcoin, luring investors by providing high returns. However, the operation collapsed when the founder, Satish Kumbhani, shut it down and fled. BitConnect was found to be a Ponzi scheme, scamming 4,000 investors worldwide out of $2.4 billion.
Bhatt Successfully Claimed a Ransom of $125 Million Through the Kidnappings
Bhatt kidnapped the employees and collected a ransom of about $125 million (Rs. 1232.50 crores), comprising 2,091 bitcoin, 11,000 Litecoin, and $1.7 million in cash in Indian rupees. He offered $34 million (Rs. 289 crores) to accomplices who helped him with the kidnapping. They used the funds to purchase “immovable properties, gold and other assets.”
A statement issued by the ED read, “ED investigation revealed that Shailesh Bhatt, to recover his investment from Satish Kumbhani, kidnapped two employee(s) of Satish Kumbhani and extorted 2091 Bitcoins, 11000 LiteCoins and INR 14.50 Crore in cash to release the kidnapped employees.”
The authority arrested Bhatt on August 13 and is currently holding him in custody as the “investigation is under progress.” He was booked under India’s Prevention of Money Laundering Act (PMLA) when he appeared before a special court in the Indian city of Ahmedabad.
This investigation began through two first information reports (FIRs) lodged by the Crime Investigation Department (CID) branch in another city, Surat. The ED has confiscated over $52 million in “movable & immovable properties” from the accused.
BitConnect founder Kumbhani is still on the run. He was under investigation by Indian authorities when he fled. He was also charged by the US Department of Justice (DoJ) in 2022 and sued by the US Securities and Exchange Commission (SEC).
