Ponzi

2024

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BitConnect

An Indian man allegedly kidnapped two men involved with the $2.4 billion BitConnect Ponzi scheme to recover losses. 
Shailesh Babulal Bhatt was an investor in BitConnect Coin, a token circulated as the platform’s native cryptocurrency, and according to a <a href="https://enforcementdirectorate.gov.in/sites/default/files/latestnews/Press%20Release_Arrest_Shailesh_Bhatt-17.08.2024.pdf" target="_blank" rel="">statement</a> from the Indian Enforcement Directorate, Bhatt, along with his accomplices, kidnapped two employees of BitConnect founder Satish Kumbhani to recoup losses via ransom payments. 
Introduced in 2016, the BitConnect Ponzi scheme disguised as a high-yield investment program, where investors were tricked into acquiring BitConnect Coins and lending them with the promise of earning up to 1% daily. The lending platform was advertised as powered by the “BitConnect Trading Bot” and “volatility software.” 
However, as with any Ponzi scheme, the operators of BitConnect paid investors returns using funds solicited from newer investors. Over its two-year run, the scheme amassed $2.4 billion from victims worldwide, with both the scheme and the token <a href="https://crypto.news/deadcoins-bitconnect-investment-fraud/" target="_blank" rel="noreferrer noopener">collapsing</a> after U.S. state regulators issued <a href="https://crypto.news/texas-securities-board-issues-bitconnect-emergency-cease-desist-order/" target="_blank" rel="noreferrer noopener">cease-and-desist orders</a>. 
Per the ED’s statement, Bhatt was able to extort 2,091 (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), 11,000 (<a href="https://crypto.news/price/litecoin/" target="_blank" rel="noreferrer noopener">LTC</a>), and approximately $1.7 million in Indian rupees from the BitConnect employees, with the entire stash valued at approximately $146.8 million. 
 You might also like: <a href="https://crypto.news/indian-authorities-freeze-highrich-groups-assets-over-alleged-crypto-fraud/"> Indian authorities freeze Highrich Group’s assets over alleged crypto fraud </a> 
Further investigation revealed that his accomplices received $34 million, which they used to acquire “immovable properties, gold, and other assets.” The ED has seized $52 million worth of “movable and immovable properties” linked to the case. 
Bhatt was arrested on Aug. 13 under India’s Prevention of Money-Laundering Act following his appearance before a court in Ahmedabad. The investigation into Bhatt was initiated following two First Information Reports <a href="https://crypto.news/indian-bitconnect-promoters-attacked-by-angry-investors/" target="_blank" rel="noreferrer noopener">filed</a> with the State Crime Investigation Department in 2022. He was first arrested a month after the kidnapping in 2017. 
The whereabouts of BitConnect’s founder, Satish Kumbhani, <a href="https://crypto.news/bitconnects-founder-missing-following-sec-indictment/" target="_blank" rel="noreferrer noopener">remain unknown</a>, but over the years, some of the scheme’s key promoters have been charged. One was John Louis Anthony Bigatton, <a href="https://crypto.news/australian-court-convicts-bitconnect-promoter-of-unlicensed-financial-advice/" target="_blank" rel="noreferrer noopener">convicted</a> by the Australian Securities &amp; Investments Commission in July 2024 for providing unlicensed financial advice. 
A similar incident involving a crypto ransom was uncovered by the Malaysian police, where 14 people were <a href="https://crypto.news/malaysian-police-pursuing-four-suspects-after-1-2m-crypto-kidnapping-ransom/" target="_blank" rel="noreferrer noopener">arrested</a> for kidnapping a Chinese national and a Malaysian woman and receiving $1.2 million in crypto as ransom. 
 Read more: <a href="https://crypto.news/indias-financial-watchdogs-seize-over-30m-in-crackdown-on-crypto-fraud/"> India’s financial watchdogs seize over $30m in crackdown on crypto fraud </a>

Indian investor kidnaps BitConnect employees to recover losses

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