BitConnect crypto scam ringleader tracked to India while authorities seize $190m

Indian authorities have seized nearly $190 million in cryptocurrency linked to the BitConnect Ponzi scheme — one of the country’s largest crypto enforcement actions.

The Enforcement Directorate of Ahmedabad carried out raids in Gujarat on February 11 and 15. The agency confiscated digital assets, $15,500 in cash, an SUV, and multiple electronic devices.

The ED launched its investigation following multiple police complaints in Surat.

According to officials, BitConnect founder Satish Kumbhani created a global network of promoters, luring investors with promises of returns as high as 40% per month through a supposed “volatility software trading bot.”

However, investigators found that investor funds were never traded but instead siphoned into digital wallets controlled by Kumbhani and his associates.

Authorities revealed that BitConnect defrauded over 4,000 investors across 95 countries, amassing $2.4 billion before its collapse in 2018.

The US Department of Justice charged Kumbhani in 2022, but he remained a fugitive until Indian authorities recently traced him to Ahmedabad.

The ED has issued a lookout circular to prevent his escape and is preparing to take him into custody.

Investigators say many transactions were routed through the dark web to obscure their origins, but forensic tracking helped pinpoint crypto wallets and assets.

With further probes ongoing, the ED is now preparing restitution for victims, including foreign nationals who lost money in the scheme.

Crypto market movers

• Bitcoin has lost 0.3% over the past 24 hours to trade at $97,170.
• Ethereum is down 0.4% on the day to $2,695.

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Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.