Indian Officials Seize $190M Crypto Connected to BitConnect
Indian officials froze nearly $190 million of cryptocurrency linked with the infamous BitConnect Ponzi scheme in connection with an on-going investigation of its fraudulent dealings. The pyramid scheme crashed in 2018 and cost the world’s economies some $2.4 billion in financial losses.
Enforcement Directorate Leads
According to a local report of February 15, the Ahmedabad Enforcement Directorate (ED) confiscated digital funds worth ₹1,646 crore ($190M) in its probe into BitConnect. Thousands of depositors were reportedly cheated in the guise of securities investment, the authorities said.
Additional Assets Confiscated
Along with the cryptocurrency, authorities also seized ₹13,50,500 ($15,582), a sport utility vehicle (SUV), and some electronic devices during raids in Gujarat on February 11 and 15. The assets were reportedly owned by BitConnect affiliates.
BitConnect, which started in 2016, offered rich returns on investments but collapsed in 2018, leaving an estimated 4,000 investors in 95 countries with enormous financial losses.
BitConnect Founder and Global Network
BitConnect creator Satish Kumbhani, charged by the U.S. Department of Justice in February 2022, is blamed for establishing a global network of promoters, promising them commissions to bring in fresh investors.
“Between November 2016 and January 2018, the defendant allegedly received money from investors all over the world, including Indian investors,” the report stated.
Investors Turn to Desperate Measures
Some defrauded investors took matters into their own hands. In August 2024, the ED reported that Shailesh Babulal Bhatt, a victim of the scheme, allegedly kidnapped two of Kumbhani’s employees to recover his lost investments. Bhatt and his accomplices extorted 2,091 Bitcoin (BTC), 11,000 Litecoin (LTC), and approximately ₹145 million ($1.7M) from the captives before their release.
FBI’s Anti-Fraud Efforts
Meanwhile, the FBI’s “Operation Level Up” initiative has reportedly prevented potential crypto fraud victims from losing approximately $285 million between January 2024 and January 2025, highlighting the ongoing global crackdown on cryptocurrency-related scams.
