As a researcher who has delved deep into the world of cryptocurrencies and their associated schemes, I find myself consistently amazed at the lengths some individuals will go to recoup losses from failed investments. The case of Shailesh Babulal Bhatt, an investor in the infamous BitConnect Ponzi scheme, is a stark reminder of this fact.
A man from India, reportedly, abducted two individuals linked to the $2.4 billion BitConnect scam, intending to recoup the money he lost in the operation that resembled a Ponzi scheme.
Shailesh Babulal Bhatt is known to have invested in the BitConnect Coin, a digital currency used on the platform. As reported by the Indian Enforcement Directorate, Bhatt and his associates abducted two employees of Satish Kumbhani, the founder of BitConnect, in an attempt to recover their losses by demanding ransom payments.
Launched in 2016, what appeared to be a lucrative investment opportunity called BitConnect turned out to be a Ponzi scheme. Unsuspecting investors were persuaded to buy BitConnect Coins and lend them at the promise of daily returns as high as 1%. The platform was marketed as being driven by the “BitConnect Trading Bot” and “volatility software.” However, in reality, it was a deceptive scheme.
In a similar fashion to Ponzi schemes, those running BitConnect used funds brought in by new investors to pay returns to earlier ones. Over its two-year lifespan, it swindled approximately $2.4 billion from victims globally. Eventually, the scheme and the token both fell apart following U.S. state regulatory orders to halt operations.
According to the Executive Director’s declaration, Bhatt successfully obtained around 2,091 Bitcoin, 11,000 Litecoin, and roughly 117.5 million Indian rupees from BitConnect employees. The total worth of this hoard is approximately $146.8 million.
Upon closer examination, it was discovered that his associates pocketed approximately $34 million, which they utilized to purchase real estate, gold, and various other valuable possessions. The Enforcement Directorate has confiscated assets totaling $52 million, including both movable and immovable properties related to the case.
On August 13, Bhatt was taken into custody under India’s Anti-Money Laundering Law, after he had appeared before a court in Ahmedabad. The probe against Bhatt began following the submission of two Initial Police Reports to the State Criminal Investigation Department in 2022. His arrest occurred approximately a month after a kidnapping incident in 2017.
The location of BitConnect’s founder, Satish Kumbhani, remains a mystery, but various prominent figures associated with the scheme have faced charges over time. One such individual is John Louis Anthony Bigatton, who was found guilty by the Australian Securities & Investments Commission in July 2024 for offering unauthorized financial advice.
In another instance, the Malaysian authorities discovered an event akin to a cryptocurrency ransom case, where they apprehended 14 individuals for abducting a Chinese citizen and a Malaysian woman. The kidnappers received approximately $1.2 million in digital currency as ransom.
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2024-08-19 11:22