- Indian ED arrests Babulal Bhatt for involvement in $148 million crypto scheme.
- Bhatt extorted 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in money from workers of Bitconnect Coin promoter Satish Kumbhani.
- The ED is investigating the distribution and use of recovered funds.
India's Enforcement Directorate (ED) has arrested Shailesh Babulal Bhatt, a resident of Gujarat, in reference to a high-profile cryptocurrency-related extortion case value over Rs 1,200 crore. Bhatt, who was concerned in a number of instances of kidnapping and extortion, was taken into custody on Tuesday, the ED introduced on Saturday.
The ED's cash laundering investigation was initiated following two FIRs filed by the Surat Police CID in opposition to Satish Kumbhani, the alleged promoter of Bitconnect Coin.
Bitconnect Coin, a cryptocurrency platform, lured traders with profitable schemes in 2017-18. Nonetheless, in January 2018, Kumbhani abruptly stopped promoting Bitconnect Coin and shut down the platform, absconding with traders' funds.
Bhatt, who invested in Bitconnect Coin, resorted to excessive measures to get well his funding. He kidnapped two Kumbhani workers and extorted a staggering 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in money as ransom. The ED disclosed that the present worth of those crypto belongings is 1,232.50 million rupees or 148,370,815 USD.
As well as, Bhatt distributed Rs 289 crore of extorted funds to his accomplices who had been actively concerned within the kidnapping and extortion operations. These illicit proceeds had been used to amass actual property, gold and different precious belongings.
The central company emphasised that Bhatt's arrest is a part of a broader initiative to crack down on cash laundering actions linked to cryptocurrency scams. ED is diligently investigating the case to uncover extra particulars concerning the distribution and utilization of the recovered funds.
The ED's actions replicate its dedication to combating monetary crime and holding perpetrators accountable. His ongoing investigation goals to hint and seize ill-gotten wealth, protect monetary integrity and shield traders.
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