- 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 cash from Bitconnect Coin promoter Satish Kumbhani’s employees.
- 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 connection with a high-profile cryptocurrency-related extortion case valued at over Rs 1,200 crore. Bhatt, who has been implicated in multiple kidnapping and extortion incidents, was taken into custody on Tuesday, as announced by the ED on Saturday.
The ED’s probe into the money laundering activities was initiated following two FIRs lodged by the Surat Police CID against Satish Kumbhani, the alleged promoter of Bitconnect Coin.
Bitconnect Coin, a cryptocurrency platform, lured investors with lucrative schemes during 2017-18. However, in January 2018, Kumbhani abruptly ceased the sale of Bitconnect Coin and shut down the platform, absconding with investors’ funds.
Bhatt, who had invested in Bitconnect Coin, resorted to extreme measures to recover his investment. He kidnapped two of Kumbhani’s employees and extorted a staggering 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in cash as ransom. The ED disclosed that the current value of these crypto assets stands at Rs 1,232.50 crore or $148,370,815.
Furthermore, Bhatt distributed Rs 289 crore of the extorted funds to his accomplices, who played active roles in the kidnapping and extortion operations. These illicit proceeds were used to acquire immovable properties, gold, and other valuable assets.
The central agency emphasized that Bhatt’s arrest is part of a broader initiative to clamp down on money laundering activities associated with cryptocurrency frauds. The ED is diligently investigating the case to uncover additional details regarding the distribution and utilization of the extorted funds.
The ED’s actions reflect its commitment to combating financial crimes and holding offenders accountable. Its ongoing investigation aims to trace and confiscate illegally acquired assets, maintain financial integrity, and protect investors.
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