- Indian authorities confiscated nearly US$190M in cryptocurrency linked to the Bitconnect Ponzi scheme, which defrauded thousands of investors worldwide before collapsing in 2018.
- Officials also seized cash, an SUV, and electronic devices in Gujarat, connecting them to individuals involved in the scheme
- The Ponzi scheme affected 4,000 investors across 95 countries and led to losses of US$2.4B.
Indian authorities have confiscated nearly US$190M (AU$299M) in cryptocurrency as part of an ongoing investigation into Bitconnect, a global Ponzi scheme that collapsed in 2018.
The Enforcement Directorate (ED) in Ahmedabad reported the seizure, stating that the funds were linked to a fraudulent investment scheme that misled thousands of investors:
The Enforcement Directorate (ED), Ahmedabad, has seized cryptocurrency worth Rs 1,646 crore during its investigation into BitConnect cryptocurrency fraud in which numerous depositors were allegedly duped in the name of securities investment.
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Officials also seized ₹13,50,500 (about AU$24.500), an SUV, and several electronic devices during raids in Gujarat on February 11 and 15. These assets were reportedly connected to individuals involved with Bitconnect, a scheme that cost 4,000 investors across 95 countries approximately US$2.4B. (AU$3.78B).
Bitconnect!
Bitconnect is one of crypto’s most blatant and fraudulent schemes. Satish Kumbhani perpetrated it in 2016, attracting investors with promises of high returns before shutting down abruptly in 2018. In 2022, US authorities charged Kumbhani with orchestrating a network of promoters who recruited new investors in exchange for commissions.
And no, Kumbhani is not the Bitconnect meme guy. That’s Carlos Matos, an investor from New York who appeared at an event and intensely screamed “Bitconnect” several times and at random pitches, becoming an instant meme online.
Anyway, the Investigators say the scheme operated globally, including in India, where it collected funds between late 2016 and early 2018.
But the story is not over just then because last year some of the victims sought their own form of justice, like investor Shailesh Babulal Bhatt, who lost money in Bitconnect Coin (BCC) and allegedly kidnapped two of Kumbhani’s employees with the help of accomplices.
The group of investors reportedly forced them to hand over 2,091 Bitcoin, 11,000 Litecoin, and roughly US$1.7M (AU$2.6m) before releasing them. Talk about patience and careful planning.
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