Indian Authorities Arrest Man for Kidnapping Linked to $2.4B BitConnect Scam

Bhatt, reportedly seeking to recover his lost investments, has been apprehended by the Indian Enforcement Directorate (ED) under the Prevention of Money-Laundering Act (PMLA).

The Arrest of Shailesh Babulal Bhatt

Bhatt, who had invested heavily in BitConnect Coin, allegedly took extreme measures to reclaim his lost funds. According to the ED, Bhatt, along with accomplices, kidnapped two employees of Satish Kumbhani, the founder of BitConnect. 

The ransom demanded included both cryptocurrency and cash. Bhatt is accused of extorting 2,091 Bitcoins (valued at approximately $125 million), 11,000 Litecoins, and ₹14.50 crore in cash, totaling around ₹1,232.50 crore ($146 million).

The investigation revealed that Bhatt used a portion of the extorted funds to reward his accomplices and purchase assets such as properties and gold. Specifically, Bhatt shared ₹289 crore ($1.7 million) of the extorted money with his partners in crime. This funding was reportedly used for luxury purchases and investments.

The arrest follows an ongoing investigation initiated by complaints filed by the Surat Police CID against Satish Kumbhani. Kumbhani, who disappeared after shutting down BitConnect, is facing legal actions in both the U.S. and India. 

Background of the BitConnect Scam

However, BitConnect was a classic Ponzi scheme, using funds from new investors to pay returns to earlier participants. By January 2018, the platform collapsed following cease-and-desist orders from U.S. state regulators, leaving investors worldwide with significant losses.