Indian Authorities Seize $190 Million in Cryptocurrency from BitConnect Scam
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Nearly $190 million in bitcoin connected to the BitConnect Ponzi scheme has been seized by Indian police. This is one of the biggest anti-crypto fraud campaigns in the nation. On February 11 and 15, the Ahmedabad-based Enforcement Directorate (ED) raided Gujarat and seized several electronic devices, digital assets, and $15,500 in cash.
To this end, after Surat police got multiple reports about the scam, the ED began looking into it.
How BitConnect Tricked Investors
BitConnect was founded by Satish Kumbhani, who built a global network of promoters to attract investors. He promised investors extremely high returns—up to 40% per month—through a special “volatility software trading bot.” Many people from different countries believed in this scheme and invested their money, hoping for massive profits.
Investigators later learned, however, that BitConnect never traded using investor funds. Rather, Kumbhani and his associates surreptitiously moved the money into their Bitcoin wallets. Over 4,000 investors from 95 countries were defrauded by the enormous hoax, which ran for years. To this end, BitConnect had amassed almost $2.4 billion by the time it failed in 2018. The case turned into one of the largest financial scams in cryptocurrency history, with many victims losing their whole life savings.
Investigations and Legal Actions
In 2022, the U.S. Department of Justice charged Kumbhani with fraud and other crimes. However, he disappeared, making it difficult for authorities to arrest him. Recently, Indian officials traced him to Ahmedabad. To prevent him from escaping again, the ED issued a lookout circular and is preparing to take him into custody.
Investigators also found that many of BitConnect’s transactions were done through the dark web to hide their source. However, forensic experts tracked the money to different cryptocurrency wallets. With further investigations ongoing, the ED is now planning to return some of the stolen money to victims, including foreign investors who were scammed. Authorities are also working to identify more people who may have helped run the fraud.
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