Indian Authorities Capture Suspect Involved in Crypto Extortion Case
A man named Shailesh Babulal Bhatt, hailing from Gujarat, has been apprehended by Indian law enforcement under the anti-money laundering law. This arrest comes as a result of his involvement in kidnapping and extortion cases, including a significant crypto-related crime amounting to over Rs 1,200 crore ($144 million).
The Enforcement Directorate (ED) confirmed Bhatt’s arrest after conducting a money-laundering investigation. This investigation was initiated by the ED following the filing of FIRs (First Information Reports) by the Surat Police CID against Satish Kumbhani, the mastermind behind the fraudulent cryptocurrency scheme Bitconnect Coin. Kumbhani allegedly deceived investors and absconded after shutting down the Bitconnect platform in January 2018.
Reportedly, Bhatt, who had invested in Bitconnect, took matters into his own hands and resorted to kidnapping two employees associated with Kumbhani in an attempt to retrieve his funds. As a result, he extorted 2,091 bitcoins, 11,000 litecoins, and Rs 14.50 crore in cash, collectively valued at Rs 1,232.50 crore today.
Furthermore, Bhatt illicitly distributed Rs 289 crore, obtained through these extorted funds, among his cohorts. This money was utilized to acquire various assets.
The arrest of Shailesh Babulal Bhatt sheds light on the illegal activities permeating the cryptocurrency sector in India. Authorities continue to crack down on individuals involved in such crimes to maintain law and order in the realm of digital finance.