Disgruntled BitConnect Investor Kidnaps Two Employees
Indian authorities have arrested Shailesh Babulal Bhatt, who is accused of kidnapping two people linked to the collapsed BitConnect crypto scheme to recoup his investment. On August 17th, the Enforcement Directorate (ED) revealed Bhatt had lost money in BitConnect Coin, a cryptocurrency tied to the now-defunct BitConnect platform, deemed a global Ponzi scheme.
A Lengthy Investigation
Allegedly, Bhatt and his accomplices abducted two employees of Satish Kumbhani, the founder of BitConnect, demanding a ransom of 2,091 Bitcoin, 11,000 Litecoin, and roughly $1.7 million USD. During the investigation, Bhatt admitted to paying his accomplices $34 million, which was used to buy properties, gold, and other assets.
After a lengthy investigation by local authorities, Bhaty was arrested on August 13th under the Prevention of Money-Laundering Act (PMLA) and remains in custody after a court appearance in Ahmedabad, India. The investigation followed reports filed by the State Crime Investigation Department (CID) in Surat. So far, the agency has seized assets worth $52 million, with the probe still ongoing.
An Infamous Scam
BitConnect, launched in 2016 and collapsing in 2018, defrauded 4,000 people across 95 countries, resulting in losses of about $2.4 billion. The scheme has been accused of being a major Ponzi operation. BitConnect founder Satish Kumbhani faces charges in the US for running the scheme and remains unaccounted for.
In addition, key figures involved in BitConnect have faced legal action. Glenn Arcaro, a prominent US promoter, was sentenced to 38 months in prison in September 2022. John Bigatton, another major promoter, was convicted in July for providing unlicensed financial advice.
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