An Indian man allegedly kidnapped two men involved in the $2.4 billion BitConnect Ponzi scheme to recover losses.
Shailesh Babulal Bhatt was an investor in BitConnect Coin, a token that circulated as the platform’s native cryptocurrency, and according to a statement According to a report by India’s Enforcement Directorate, Bhatt and his accomplices kidnapped two employees of BitConnect founder Satish Kumbhani to recover losses through ransom payments.
The BitConnect Ponzi scheme, introduced in 2016, was disguised as a high-yield investment program, where investors were tricked into purchasing BitConnect coins and lending them out with the promise of earning up to 1% daily. The lending platform was advertised as being powered by the “BitConnect trading bot” and “volatility software.”
However, as in any Ponzi scheme, BitConnect operators paid investors profits using funds solicited from newer investors. During its two years of operation, the scheme collected $2.4 billion from victims around the world, both the scheme and the token. collapsing after US state regulators issued cease and desist orders.
According to the CEO’s statement, Bhatt was able to extort 2,091 (Bitcoin), 11,000 (LTC) and approximately $1.7 million in Indian rupees from BitConnect employees, with all of the money valued at approximately $146.8 million.
Subsequent investigations revealed that his accomplices received $34 million, which they used to acquire “real estate, gold and other assets.” The Investigation Directorate has seized “movable and immovable property” worth $52 million linked to the case.
Bhatt was arrested on August 13 under India’s Prevention of Money Laundering Act after he was produced before an Ahmedabad court. The investigation into Bhatt was initiated following two First Information Reports filed with the State Crime Investigation Department in 2022. He was first arrested a month after the kidnapping in 2017.
The whereabouts of BitConnect founder Satish Kumbhani remain unknownBut over the years, some of the key promoters of the scheme have been indicted. One of them was John Louis Anthony Bigatton, convicted by the Australian Securities and Investments Commission in July 2024 for providing unlicensed financial advice.
Malaysian police uncovered a similar incident involving a cryptocurrency ransom, in which 14 people were killed. arrested for kidnapping a Chinese citizen and a Malaysian woman and receiving $1.2 million in cryptocurrency as ransom.
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