India’s ED seizes $198 million in cryptocurrency linked to the BitConnect Ponzi scheme, exposing one of the largest crypto fraud cases in history.
India Cracks Down on BitConnect Ponzi Scheme
India’s Directorate of Enforcement (ED) has seized cryptocurrencies worth approximately Rs. 1,646 crore ($198 million) in connection with the BitConnect Ponzi scheme, marking one of the country’s largest crypto fraud investigations. The ED conducted search operations on February 11 and 15 under the Prevention of Money Laundering Act (PMLA), 2002.
According to an official statement, investigators also seized Rs. 13.5 lakh in cash, a Lexus car, and multiple digital devices. The probe was based on First Information Reports (FIRs) registered by the Crime Investigation Department (CID) in Surat.
BitConnect’s Fraudulent Scheme
Between November 2016 and January 2018, BitConnect lured investors worldwide, including in India, the U.S., and other countries, with promises of high returns through its “Lending Program.” The company falsely claimed that an automated volatility software trading bot could generate up to 40% monthly returns, amounting to 3,700% annual profits.
However, authorities found that no actual investments were made. Instead, the perpetrators transferred the funds into private digital wallets, concealing them from investors and regulators.
Tracking Hidden Crypto Assets
The ED’s investigation involved analyzing multiple crypto wallets and conducting on-the-ground intelligence operations. Authorities identified and seized the digital assets, ensuring that illicit funds could not be further laundered.
BitConnect collapsed in early 2018 after being exposed as a Ponzi scheme. Following its downfall, global authorities intensified investigations, leading to multiple arrests and legal actions.
Legal Actions Against BitConnect Founders and Promoters
BitConnect’s founder, Satish Kumbhani, was indicted in the U.S. in February 2022, but his whereabouts remain unknown. Meanwhile, Glenn Arcaro, the platform’s top U.S. promoter, was sentenced to 38 months in prison and ordered to repay $17 million to victims.
The $2.4 billion fraud remains one of the largest cryptocurrency scams, with authorities worldwide working to recover stolen assets and hold those responsible accountable.
India’s Crypto Fraud Crackdown Continues
This major seizure highlights India’s ongoing efforts to regulate the crypto industry and combat financial crimes. With increasing scrutiny on digital assets, authorities are ramping up enforcement to protect investors from fraudulent schemes.
As crypto regulations evolve, staying informed is essential. Follow the latest developments in cryptocurrency laws and fraud prevention to safeguard your investments.
