Economic Fraud
ED Arrests Kidnapper for Extorting 2,091 Bitcoins and 11,000 Litecoins Worth Rs 1,232.5 Crore
In a major crackdown, the Enforcement Directorate has arrested Shailesh Bhatt in a Rs 1,232.5 crore crypto extortion case. Bhatt, who was defrauded in a cryptocurrency scam, allegedly kidnapped and extorted Bitcoins, LiteCoins, and cash to recover his investment. The ED has attached assets worth Rs 442 crore linked to the crime.
Ahmedabad, Gujarat — The Enforcement Directorate (ED) Ahmedabad Zone has made a significant arrest in a high-profile case involving the extortion of cryptocurrency and cash worth Rs 1,232.5 crore. The man, identified as Shailesh Babulal Bhatt, was taken into custody on August 13, 2024, under the Prevention of Money Laundering Act (PMLA) in connection with this massive extortion scheme.
The investigation was initiated by the ED based on two cheating cases registered by the Surat CID (Crime) against Satish Kumbhani, the promoter of Bitconnect Coin. Kumbhani had lured people into investing in Bitconnect Coin between 2017-18, but abruptly shut down the cryptocurrency and fled. Shailesh Bhatt, one of the investors who fell victim to this fraud, allegedly resorted to kidnapping and extortion to recover his losses.
Details of the Extortion Scheme:
According to the ED, Bhatt kidnapped two of Kumbhani’s employees and extorted a staggering 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in cash from them. The total value of the extorted assets amounts to Rs 1,232.5 crore.
The ED’s investigation revealed that Bhatt distributed the proceeds of the crime, worth Rs 289 crore, among his accomplices for their participation in the kidnapping and extortion. The ill-gotten gains were then used to purchase immovable properties, gold, and other valuable assets.
As part of their ongoing investigation, the ED has attached movable and immovable properties worth Rs 442 crore linked to this case. These assets are believed to have been acquired using the proceeds of the crime.
Impact and Legal Actions:
The arrest of Shailesh Bhatt marks a significant step in the crackdown on financial crimes involving cryptocurrencies. The ED continues to probe the financial trail left by Bhatt and his associates, with more arrests and property attachments expected in the coming days.
The case highlights the risks associated with investments in unregulated digital currencies and the lengths to which individuals may go to recover their losses. The ED’s actions in this case underscore the importance of legal oversight and the need for investors to exercise caution in the rapidly evolving world of cryptocurrency.
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