• The Indian Directorate of Enforcement (ED) 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.

As a seasoned crypto investor with a penchant for staying abreast of the latest developments in the digital currency world, I must say that the arrest of Shailesh Babulal Bhatt by the Indian Directorate of Enforcement is both a shocking and intriguing turn of events.


The Indian enforcement agency, known as the Directorate of Enforcement (ED), apprehended Shailesh Babulal Bhatt due to his suspected role in the abduction of two workers from BitConnect, a previous online platform, with an aim to recover losses he had incurred.

As an analyst, I’ve uncovered some troubling details about a previous venture known as BitConnect. In this platform, they exchanged BitConnect tokens (BCC) for bitcoin, enticing investors with promises of substantial returns. Unfortunately, the project crumbled when its founder, Satish Kumbhani, abruptly shut it down and disappeared, leaving behind a trail of disillusioned investors.

Bhatt Successfully Claimed a Ransom of $125 Million Through the Kidnappings

Bhatt, the captor, seized his victims and demanded a ransom worth approximately $125 million (Rs. 1232.50 crores), which included 2,091 bitcoin, 11,000 Litecoin, and $1.7 million in Indian rupees in cash. He provided $34 million (Rs. 289 crores) as an incentive to his associates who aided him in the kidnapping. They subsequently used these funds to buy real estate, gold, and other valuable possessions.

According to an announcement from the Enforcement Directorate, their investigation found that Shailesh Bhatt allegedly kidnapped two of Satish Kumbhani’s employees to get back his investment. This act led to him demanding and receiving 2091 Bitcoins, 11,000 LiteCoins, and approximately INR 145 Crores in cash as ransom, before eventually freeing the kidnapped employees.

On August 13, Bhatt was taken into custody by the Enforcement Directorate (ED), and they continue to hold him as their investigation into the matter is ongoing. He was charged under India’s Prevention of Money Laundering Act (PMLA) when he appeared before a special court in Ahmedabad city.

As a seasoned investigator with years of experience under my belt, I find myself constantly amazed at the intricacies and complexities that lie within the world of crime. My latest case began through two initial reports lodged by the Crime Investigation Department (CID) branch in Surat, another city. The Economic Division (ED), a branch of our agency, has seized over $52 million in assets – both movable and immovable properties – from the accused.

The founder of BitConnect, Kumbhani, remains elusive and untraced. His escape came during an ongoing investigation by Indian authorities, and he was subsequently charged by the United States Department of Justice (DoJ) in 2022 and sued by the U.S. Securities and Exchange Commission (SEC).

 

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2024-08-19 20:40