BitConnect Crypto Extortion Perpetrator Indicted In Indian

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India’s Enforcement Directorate has apprehended Shailesh Bhatt for his role in the BitConnect crypto extortion scheme. Bhatt is facing charges for money laundering and defrauding some individuals of their assets worth approximately $145 million. This includes 2,091 Bitcoin (BTC), 11,000 Litecoin (LTC), and some cash.

The scammer acquired these funds in another operation linked to a Ponzi scheme dubbed BitConnect coin, which operated between 2017 and 2018.

BitConnect Founder Faces Charges in the US

It is worth noting that the founder of the scheme, Satish Kumbhani, faced indictment in the United States two years ago, according to the Department of Justice (DoJ). The charges brought against him included conspiracy to commit wire fraud, commodity price manipulation, and operation of an unlicensed money-transmitting business. He was also accused of conspiracy to commit international money laundering.

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Kumbhani and his co-conspirators misled investors into believing some false information about BitConnect’s purported proprietary technology, known as the ‘BitConnect trading bot’ and “volatility software.” Investors believed that these tools could generate substantial profits and provide them with returns after they had invested money in trading on the volatility of cryptocurrency exchange markets.

Bhatt Kidnaps BitConnect Employees

Eventually, Kumbhani abruptly stopped the business and made off with investors’ funds, running to the tune of millions. In order to recover his funds from him, Bhatt kidnapped two BitConnect employees. He then extorted the earlier listed digital assets and cash for the release of the kidnapped staff.

The Enforcement Directorate launched an investigation after it received a few complaints under the relevant sections of the law regarding charges of cheating.

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BitConnect Scammers Goes on a Spending Spree

The investigation showed that Bhatt distributed the proceeds of his crime to a few entities who acted as his accomplices. They actively took part in the kidnapping and extortion.

Bhatt and his allies used their loot to purchase immovable properties, gold, and other assets. So far, the Enforcement Directorate has attached up to Rs 442 crore worth of movable and immovable properties, equivalent to around $52 million. The investigation is still ongoing.

Amidst this development, Chainalysis noted that aggregate illicit activity on blockchain networks this year has decreased by up to 20%.