India Seizes $190M in Crypto as Bitconnect Scam’s Global Fallout Continues

• Indian authorities seize $190M in crypto, exposing Bitconnect’s lasting damage and ongoing global fraud investigations.
• Bitconnect’s Ponzi scheme lured thousands with false promises, leaving victims desperate and authorities chasing lost funds.
• Investigators track stolen assets using advanced tools, uncovering dark web transactions and luxury purchases tied to the scam.

Nearly $190 million worth of Bitcoin connected to Bitconnect has been seized by Indian authorities. Targeting assets linked to the fraudulent platform, the Enforcement Directorate (ED) carried out raids in Gujarat. One of the largest Ponzi schemes in the cryptocurrency industry is the subject of an ongoing investigation, which includes this action.

In addition, during the raids, authorities found an SUV, cash, and technological devices. According to the inquiry, Bitconnect’s operators deceived investors by guaranteeing them large returns on their capital. But in 2018, the plan fell apart, resulting in large financial losses.

Global Impact of Bitconnect’s Collapse

More than 4,000 investors in 95 countries were impacted by Bitconnect’s operations. When the platform was introduced in 2016, it immediately became well-known and attracted investors with the promise of large profits. To compensate current investors, the business plan, however, mostly depended on fresh capital. As a result, the building collapsed when authorities stepped in, resulting in losses of billions.

Moreover, founder Satish Kumbhani, charged by U.S. authorities in 2022, allegedly created an extensive promoter network. These promoters received commissions for bringing in new investors. Additionally, many victims took desperate measures to recover their lost funds. One such investor, Shailesh Babulal Bhatt, allegedly kidnapped two Bitconnect employees to reclaim his investments.

The Investigation and Asset Seizures

The ED’s probe uncovered numerous digital wallets used to funnel stolen funds. Authorities found that a portion of these transactions occurred on the dark web. However, investigators used advanced tracking tools to identify and seize illicit assets.

Furthermore, authorities seized assets valued at about $59 million during an earlier stage of the investigation. Authorities think that the money was transferred into untraceable accounts and used to buy luxuries. The goal of ongoing tracking is to determine the complete scope of the scam.

More than $17 million in reparations for almost 800 victims in 40 countries were mandated by U.S. courts. As a result, the crackdown on fraud involving cryptocurrency emphasizes the necessity of more stringent laws. Law enforcement organizations also stress how crucial investor education is to averting future scams of this nature.