The post Indian man arrested for kidnapping, extorting $125 million from BitConnect employees appeared on BitcoinEthereumNews.com.

Indian authorities have arrested a man who allegedly kidnapped and extorted two employees of the defunct crypto platform BitConnect to recover his funds. Shailesh Babulal Bhatt lost money after investing in the Bitconnect Coin (BCC). Bitconnect is a crypto project that gained worldwide recognition in 2017. It raised billions from investors in an initial coin offering (ICO) as its token market cap reached over $3 billion. However, authorities now consider it a Ponzi scheme. Bahtt extorted $125 million in crypto from kidnap victims According to a statement from the Directorate of Enforcement (ED), Bhatt collected 2,091 Bitcoin, 11,000 Litecoin, and $1.7 million from the kidnap victims before releasing them. He shared $125 million with his two accomplices, who got $34 million. The incident dates back to 2017, but authorities could only arrest Bhatt on August 13, 2024, under India’s Prevention of Money Laundering Act (PMLA). The alleged suspects have already spent some funds buying other assets, such as gold and real estate. However, the ED claimed it had recovered about $52 million in movable and immovable assets; it now holds Bhatt in custody after securing approval from the Honourable Special Court for PMLA. With investigations still ongoing, authorities are likely looking to arrest the accomplices and recover the rest of the funds. Seven years later, Bitconnect victims wait on Meanwhile, the incident brings to light once again the BitConnect incident. BitConnect was a crypto lending platform that launched in 2016. It offered proprietary trading technology that was guaranteed to give investors returns and had people invest in its BCC token. However, it collapsed two years later in 2018 after closing its platform, leaving investors with over $2.4 billion in losses. Global regulators have now described it as a Ponzi scheme, leading to the conviction of some of its promoters in…

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Filed under: News - @ August 19, 2024 10:17 am