- Fourteen men, including senior police officers and a former legislator, received life sentences in a Bitcoin extortion case.
- Victim Shailesh Bhatt was abducted and forced to transfer 34 Bitcoin after ransom demands.
- Bhatt himself faces separate charges for kidnapping BitConnect promoters and extorting crypto and cash.
An Indian anti-corruption court sentenced 14 men to life imprisonment for their roles in a 2018 kidnapping and extortion scheme that targeted a businessman for his cryptocurrency holdings. The ruling confirmed by a local report and delivered in Ahmedabad by Special Judge B.B. Jadav, implicated senior police officers and a former legislator, underscoring one of India’s most high-profile crypto-related criminal cases.
Senior Officials Among Convicted
Among those convicted were 11 police officers, including the former superintendent of police for Amreli district. Nalin Kotadiya, a former Member of the Gujarat Legislative Assembly, was also sentenced. Authorities charged the group under the Indian Penal Code for kidnapping, extortion, and conspiracy, as well as corruption laws for abusing public office.
Kotadiya had evaded arrest for months before his capture in September 2018. His conviction closed one of the longest-running chapters in the investigation, which drew national attention due to the involvement of serving police officials.
Kidnapping and Extortion Demands
According to court findings, complainant Shailesh Bhatt was abducted on February 9, 2018, after being lured to a gas station. Men posing as Central Bureau of Investigation agents intercepted him and transported him to a farmhouse. Once detained, Bhatt was threatened at gunpoint and ordered to comply with ransom demands.
The kidnappers initially demanded 176 Bitcoin and an additional ₹32 crore in cash, valued at $3.6 million at that time. Negotiations reduced the demand to 34 Bitcoin, worth about $150,000, which Bhatt transferred to the group. A separate plan to deliver cash failed after a courier suspected deception and withheld payment.
Evidence and Witness Testimonies
The prosecution called 172 witnesses in the trial, including bank officials investigating financial transfers and digital forensic experts. Many of the police constables who played a role in the abduction later became approvers. However, 92 witnesses recanted or changed their previous statements, which raises concerns of intimidation.
Judge Jadav issued perjury notices to 25 hostile witnesses during sentencing. The detailed testimony and forensic evidence allowed the court to convict despite significant retractions. While Bhatt acted as complainant in this case, he faces criminal charges in separate proceedings. Authorities accused him of kidnapping two BitConnect promoters and extorting 2,091 bitcoin, 11,000 litecoin, and ₹14.5 crore in cash. India’s Enforcement Directorate arrested him on August 13, 2024, on charges including money laundering and kidnapping. Bhatt’s separate case continues in Indian courts, leaving the unusual circumstance where a victim in one crypto extortion plot also stands accused of orchestrating another.
