Arbitrum (arb) 
An Indian man allegedly kidnapped two men involved with the $2.4 billion BitConnect Ponzi scheme to recover losses.
Shailesh Babulal Bhatt, an investor in BitConnect Coin, a token used as the platform’s native cryptocurrency, reportedly kidnapped two employees linked to BitConnect’s founder, Satish Kumbhani. According to the Indian Enforcement Directorate, Bhatt aimed to recoup his losses through ransom payments.
BitConnect, introduced in 2016, was presented as a high-yield investment program. Investors were misled into acquiring BitConnect Coins and lending them with promises of earning up to 1% daily. The lending platform claimed to be powered by the “BitConnect Trading Bot” and “volatility software.”
However, as with any Ponzi scheme, BitConnect operators paid returns to investors using funds from newer investors. Over two years, the scheme accumulated $2.4 billion from victims globally. The scheme and the token collapsed after U.S. state regulators issued cease-and-desist orders.
The Indian Enforcement Directorate’s statement revealed that Bhatt extorted 2,091 BTC, 11,000 Litecoins, and approximately $1.7 million in Indian rupees from the BitConnect employees. The total stash was valued at around $146.8 million.
Further investigation uncovered that Bhatt’s accomplices received $34 million, which they used to acquire “immovable properties, gold, and other assets.” The Enforcement Directorate seized $52 million worth of “movable and immovable properties” linked to the case.
Bhatt was arrested on August 13 under India’s Prevention of Money-Laundering Act after appearing before a court in Ahmedabad. The investigation into Bhatt began following two First Information Reports filed 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, remain unknown. However, over the years, some of the scheme’s key promoters have been charged. One notable case involved John Louis Anthony Bigatton, who was convicted by the Australian Securities & Investments Commission in July 2024 for providing unlicensed financial advice.
A similar incident involving a crypto ransom was uncovered by Malaysian police, where 14 people were arrested for kidnapping a Chinese national and a Malaysian woman, receiving $1.2 million in crypto as ransom.
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