- Shailesh Bhatt extorted 2,091 Bitcoins, 11,000 LiteCoins, and ₹14.50 Cr in cash after kidnapping Bitconnect employees.
- Bhatt distributed ₹289 Cr of extorted funds to accomplices, later using the money to acquire gold, properties, and other assets.
- ED seized ₹442 Cr in assets from Bhatt as part of an ongoing investigation into the crypto extortion and money laundering case.
The Enforcement Directorate (ED) arrested Shailesh Babulal Bhatt in connection with a crypto extortion case valued at ₹1,232.50 crore. Bhatt’s arrest comes after a probe into extortion and money laundering charges connected to the now-defunct Bitconnect scam.
Bhatt is accused of kidnapping employees of Satish Kumbhani, promoter of Bitconnect Coin, and extorting large amounts of cryptocurrency and cash. The agency’s investigation stems from two First Information Reports (FIRs) filed by the Surat Police CID against Kumbhani.
Bitconnect Coin Scheme Leads to Criminal Actions
During 2017 and 2018, Bitconnect Coin, a cryptocurrency promoted by Satish Kumbhani, allegedly lured investors to deposit substantial funds into its investment schemes. However, Kumbhani abruptly closed the sale of the cryptocurrency in January 2018, shuttering the platform and disappearing with investor funds.
Shailesh Bhatt, an investor in Bitconnect Coin, sought to recover his financial losses by allegedly kidnapping two of Kumbhani’s employees. Bhatt then extorted 2,091 Bitcoins, 11,000 LiteCoins, and ₹14.50 crore in cash as ransom.
The investigation revealed that the value of the extorted cryptocurrencies amounts to ₹1,232.50 crore according to current exchange rates. Bhatt’s criminal actions were reportedly an effort to regain his investments lost in the failed Bitconnect Coin venture.
Money Laundering and Property Acquisitions
Bhatt is accused of distributing part of the extorted proceeds, valued at ₹289 crore, to accomplices involved in the kidnapping and extortion plot. This money was further used to purchase immovable properties, gold, and other valuable assets.
The ED’s investigation led to the attachment of movable and immovable properties worth ₹442 crore as part of the ongoing probe. Notably, Bhatt’s actions have exposed the broader financial implications of the failed Bitconnect scam, adding complexity to the agency’s investigation.
Continuing Investigation and Legal Proceedings
The ED’s investigation, initiated after two FIRs were filed against Kumbhani for cheating the public, remains ongoing. Bhatt has been charged under the Prevention of Money Laundering Act (PMLA).
He appeared before a special PMLA court in Ahmedabad and has been remanded to ED custody for further questioning. The agency continues to track the proceeds of the crime, with further developments expected as the probe continues.
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