The Enforcement Directorate (ED) has seized cryptocurrency worth ₹1,646 crore (approximately $197 million) in connection with the notorious BitConnect scam. The operation, which took place in Ahmedabad, also led to the confiscation of ₹13.50 lakh in cash, an SUV, and several digital devices.
BitConnect, a global Ponzi scheme, enticed investors by offering promises of extraordinary returns through a so-called “high-tech” trading bot. Founded by Satish Kumbhani, the platform offered up to 40% monthly profits in exchange for converting Bitcoin (BTC) into its proprietary digital currency, BitConnect Coin (BCC). The platform also employed a referral system that resembled a multi-level marketing (MLM) structure, urging users to recruit new investors.
The scam ran from November 2016 to January 2018, luring victims with claims of significant monthly profits generated by a “volatility software trading bot.” Bitcoin deposits were converted into BitConnect’s BCC, and users were rewarded for recruiting others into the program. The scheme eventually collapsed in January 2018 after global regulatory authorities intervened, leaving investors with huge losses.
The ED’s investigation, which began in 2018 after FIRs were filed by Surat’s CID, had already led to the attachment of ₹489 crore worth of assets linked to the scam. This latest move underscores the continued efforts by authorities to pursue those involved in the fraud. Additionally, authorities have confirmed that foreign nationals were also among the investors, and Kumbhani is still under investigation by U.S. federal agencies.
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