In an absurd turn of events, an Indian man has reportedly kidnapped two individuals associated with BitConnect founder Satish Kumbhani’s team. Th Indian law enforcement made an arrest on 19 August 2024, local media reported.
The accused, Shailesh Babulal Bhatt, allegedly orchestrated the kidnapping to extract ransom payments and to recover the losses he incurred from investing in the scheme.
Launched in 2016, BitConnect lured investors with promises of lucrative returns through its native token, BitConnect Coin, and lending platform. The platform enticed investors with the prospect of daily returns of up to 1%.
However, the unsustainable model unravelled, resulting in a staggering $2.4 billion in losses globally. Later, regulators cracked down on the fraudulent operation.
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Bhatt Extorts Huge Sum From BitConnect Employees
According to the Indian Enforcement Directorate (ED), Bhatt managed to extort a substantial sum from the kidnapped employees. The extortion includes 2,091 Bitcoins, 11,000 Litecoins, and around $1.7 million in Indian rupees. The total haul amounted to a staggering $146.8 million.
Further investigation revealed that his accomplices received $34 million, which they used to acquire “immovable properties, gold, and other assets.”
The ED seized $52 million worth of “movable and immovable properties” linked to the case.
Remember BitConnect? Its story isn’t over yet… and now it involves kidnapping.
A BitConnect investor in India kidnapped two employees of BitConnect’s creator, Satish Kumbhani, demanding $125 million in cryptocurrency as ransom to “recover his investment.”
Indian authorities…
— Ariel Givner (@GivnerAriel) August 19, 2024
Bhatt was apprehended on 13 August 2024 under India’s Prevention of Money Laundering Act. The arrest was triggered by two First Information Reports (FIRs) lodged with the State Crime Investigation Department in 2022.
BitConnect founder Satish Kumbhani remains elusive. He was charged by the US Department of Justice in February 2022 for running an alleged Ponzi scheme via BitConnect’s lending program.
It is worth noting that over the years, some of the scheme’s key promoters have been charged. Recently, John Louis Anthony Bigatton, a promoter of the scheme, was convicted by the Australian Securities & Investments Commission for providing unlicensed financial advice.
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Malaysians Charged with Kidnapping, Demanding Ransom
Meanwhile, in a separate development, Malaysian authorities uncovered a crypto ransom kidnapping involving 14 individuals who allegedly abducted a Chinese national and a Malaysian woman, demanding and receiving $1.2 million in cryptocurrency as ransom.
The suspects, aged between 25 and 29, allegedly abducted the victim on July 11 at an expressway exit linking Kuala Lumpur and Putrajaya. The charge sheet, as reported by local media outlet Malay Mail, details that the group held the Chinese national captive, demanding the sum in Tether.
The case has drawn attention to a larger criminal syndicate involved in cryptocurrency-related kidnappings. Selangor police chief Datuk Hussein Omar Khan revealed that the authorities are also pursuing four additional suspects linked to the abduction.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
