Indian ED Arrests Crypto Scammer in $148M Extortion Case

• The Indian ED arrests Babulal Bhatt for involvement in a $148M crypto scheme.
• Bhatt extorted 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in money from Bitconnect Coin promoter Satish Kumbhani’s workers.
• The ED is investigating the distribution and utilization of the extorted funds.

The Indian Enforcement Directorate (ED) has apprehended Shailesh Babulal Bhatt, a Gujarat resident, in reference to a high-profile cryptocurrency-related extortion case valued at over Rs 1,200 crore. Bhatt, who has been implicated in a number of kidnapping and extortion incidents, was taken into custody on Tuesday, as introduced by the ED on Saturday.

The ED’s probe into the cash laundering actions was initiated following two FIRs lodged by the Surat Police CID in opposition to Satish Kumbhani, the alleged promoter of Bitconnect Coin. 

Bitconnect Coin, a cryptocurrency platform, lured traders with profitable schemes throughout 2017-18. Nonetheless, in January 2018, Kumbhani abruptly ceased the sale of Bitconnect Coin and shut down the platform, absconding with traders’ funds.

Bhatt, who had invested in Bitconnect Coin, resorted to excessive measures to recuperate his funding. He kidnapped two of Kumbhani’s workers and extorted a staggering 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in money as ransom.  The ED disclosed that the present worth of those crypto belongings stands at Rs 1,232.50 crore or $148,370,815. 

Moreover, Bhatt distributed Rs 289 crore of the extorted funds to his accomplices, who performed energetic roles within the kidnapping and extortion operations. These illicit proceeds have been used to accumulate immovable properties, gold, and different useful belongings.

The central company emphasised that Bhatt’s arrest is a part of a broader initiative to clamp down on cash laundering actions related to cryptocurrency frauds. The ED is diligently investigating the case to uncover further particulars concerning the distribution and utilization of the extorted funds.

The ED’s actions replicate its dedication to combating monetary crimes and holding offenders accountable. Its ongoing investigation goals to hint and confiscate illegally acquired belongings, keep monetary integrity, and defend traders.