- Indian authorities have cracked down on a multimillion-dollar crypto extortion case.
- The authorities arrested one suspect in the case.
- The suspect remains in detention pending further legal action.
India ’s Enforcement Directorate (ED) in Ahmedabad has detained Shailesh Babulal Bhatt in connection with a multimillion-dollar kidnapping and extortion case involving thousands of Bitcoins .
Bhatt was arrested following a money-laundering investigation initiated by the ED based on two First Information Reports (FIR) registered by Surat authorities against Satish Kumbhani. Kumbhani was accused of defrauding Indians by luring them to invest in Bitconnect Coin between 2017 and 2018.
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Kumbhani reportedly fled the country after shutting down the investment platform, leaving victims like Bhatt stranded.
Bhatt Kidnapped Kumbhani’s Employees to Recoup Lost Investment
According to a recent X (Twitter) post, the ED’s investigation revealed that Bhatt kidnapped two of Kumbhani’s employees to recover his lost investment. The accused then extorted 2,091 Bitcoins, 11,000 Litecoins, and Rs 14.50 crore ($1.7 million) in cash for the release of the kidnapped staff.
This represented a total of $144 million, part of which Bhatt allegedly distributed to his accomplices for their role in the kidnapping and extortion. He also used the proceeds of crime to acquire immovable properties, gold, and other assets.
Per the post, the ED has since seized movable and immovable assets worth $53 million in connection to the case. Bhatt was arraigned before a special Prevention of Money Laundering Act (PMLA), where he was referred to the ED custody pending further legal action.
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Stay updated on Binance’s move to re-enter India:
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Read about WazirX’s crisis following a $230M hack:
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