Indian officials have seized around $190 million, or approximately Rs 1,646 crore, during an investigation into the BitConnect cryptocurrency fraud. This investigation is led by the Enforcement Directorate (ED) in Ahmedabad. It is part of a broader inquiry into a global Ponzi scheme that collapsed in 2018.
The ED announced that it began its investigation under the Prevention of Money-Laundering Act (PMLA). This inquiry is based on FIRs filed by the CID police in Surat back in 2018. The ED claims that the scammers collected assets from investors worldwide, including many from India.
In addition to the large sum of money, the ED also confiscated about $15,582, which is roughly ₹13.50 lakh in cash. They seized an SUV and various digital devices from multiple locations in Gujarat.
The ED has formed a team of tech experts to investigate transactions made through different crypto wallets. They aim to identify the owners of these wallets. The investigation uncovered that some transactions were conducted using the dark web to avoid detection.
All the seized assets are connected to associates of BitConnect, who scammed around 4,000 investors across 95 countries. Overall, investors lost more than $2.4 billion in this scheme. BitConnect collapsed just two years after its launch.
Satish Kumbhani is identified as the mastermind behind this fraud. He created a global network of promoters and paid them to advertise the Ponzi scheme.
