Indian ED Arrests Key Suspect in $148 Million Crypto Extortion Case.
The Indian Enforcement Directorate (ED) has detained Shailesh Babulal Bhatt, a Gujarat citizen, in connection with a high-profile cryptocurrency extortion case worth over ₹1,200 crore (roughly $148 million). Bhatt, who has been linked to multiple kidnapping and extortion cases, was nabbed earlier this week, the ED revealed on Saturday.
Bhatt, who has been engaged in multiple kidnapping and extortion cases, was arrested earlier this week, according to local media sources on Saturday.
The inquiry began after the Surat Police CID filed accusations against Satish Kumbhani, the founder of the defunct cryptocurrency company Bitconnect Coin. Bitconnect attracted a large number of investors in 2017-18 with promises of high profits. But in January 2018, Kumbhani abruptly shut down the portal and vanished with the investors’ money.
Bhatt, who had invested in Bitconnect Coin, decided to take extraordinary measures to reclaim his lost funds. He allegedly kidnapped two of Kumbhani’s employees and demanded a ransom in bitcoin and cash.
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According to the ED, Bhatt extorted 2,091 Bitcoins ($125 million), 11,000 Litecoins, and 14.50 crore in cash, valued at ₹1,232.50 crore ($146 million).
The inquiry also found that Bhatt distributed 289 crore ($1.7 million) of the extorted money to his accomplices, who assisted him in carrying out the kidnappings and extortions. The funds were utilised to purchase property, gold, and other precious commodities.
The ED said Bhatt’s arrest is part of a bigger campaign to combat money laundering tied to cryptocurrency frauds. The current investigation tries to learn more about how the extorted funds were spent and where they were buried.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
x : cryptomantr