• A particular investor in the BitConnect platform kidnapped two employees and extorted crypto for their release. 
  • The BitConnect collapse caused a loss of $2.4 billion for investors worldwide.

Cryptocurrency scams persistent over the past decade, often resurface from previous years for several reasons. For instance, the recent Mt.Gox payment of funds caused a stir in the market. The recent sentencing of Sam Bankman-Fried for the FTX collapse is a similar example. 

In the last week, a particular investor in the prominent BitConnect platform was arrested in India for attempting to retrieve his losses when the exchange collapsed. Notably, Ahmedabad’s Indian Enforcement Directorate (ED) released a statement announcing the arrest of Shailesh Babulal Bhatt who had invested in the BitConnect Coin. 

The investor was alleged by the Indian authorities to have kidnapped two employees of BitConnect creator Satish Kumbhani and extorted cryptocurrency for their release. Furthermore, he is believed to have hired two accomplices for the kidnapping and received 2,091 Bitcoins, 11,000 Litecoins, and 14.50 crore INR in cash to compensate for his BitConnect losses. 

Moreover, the total assets are valued at 1232.50 crore INR worth $146.9 million approximately. Shailesh Bhatt is believed to have paid 289 Crores in INR to the two accomplices involved in the kidnapping. 

Additionally, he was arrested on August 13, under the Prevention of Money-Laundering Act (PMLA). According to the officials, they initiated the investigation based on two FIRs filed on the BitConnect case. 

What Happened with the BitConnect Collapse? 

Crypto exchange platform BitConnect was initially launched in 2017. The exchange guaranteed investors a 40% return in four months. The platform reported shutting down services a year later in 2018, leading to a loss of $2.4 billion for investors. Several regulators including the Department of Justice (DOJ) and SEC filed cases against the creator, Satish Kumbhani.

However, Kumbhani’s whereabouts are presently unknown to the authorities. Additionally, in recent news, Australian BitConnect promoter John Bigatton was arrested in the country. The BitConnect case is believed to be one of the largest Ponzi schemes in the sector. Global regulatory officials are still on the lookout for the creator. 

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