- Indian authorities have confiscated approximately $190 million in cryptocurrency associated with the BitConnect Ponzi scheme
- The Enforcement Directorate (ED) conducted raids in Gujarat, seizing digital assets, cash, vehicles, and electronic devices
- Founder Satish Kumbhani has been located in Ahmedabad, with officials issuing a lookout notice to prevent his escape
India’s Enforcement Directorate has seized nearly $190 million in digital currencies linked to the notorious BitConnect fraud while the ringleader has been located. The operation involved multiple raids in Gujarat, resulting in the confiscation of various assets and the identification of the scheme’s mastermind, Satish Kumbhani, in Ahmedabad. Authorities have issued a lookout notice to ensure Kumbhani, who is wanted by U.S. authorities, does not evade arrest.
Huge Sum Seized by Indian Police
Launched in 2016, BitConnect enticed investors with promises of high returns through its “Lending Program,” which claimed to utilize proprietary “volatility software trading bots.” However, investigations revealed that the platform operated as a Ponzi scheme, redirecting incoming investments to pay earlier investors without engaging in genuine trading activities. The scheme defrauded over 4,000 investors across 95 countries, amassing approximately $2.4 billion before its collapse in 2018.
The Enforcement Directorate (ED) of Ahmedabad executed searches on February 11 and 15, targeting locations connected to the BitConnect scam. Officials reported the seizure of cryptocurrencies valued at ₹1,646 crore (approximately $190 million), ₹13.5 lakh in cash (around $15,500), an SUV, and several electronic devices. These actions mark one of India’s largest crypto-related enforcement efforts to date.
Founder Located
Kumbhani had been elusive since the platform’s shutdown, managing to remain in hiding since its collapse. In February 2022, the U.S. Department of Justice indicted Kumbhani on charges including conspiracy to commit wire fraud and operating an unlicensed money-transmitting business.
Having been located in Ahmedabad, the ED has issued a lookout circular and is coordinating with other agencies to secure his arrest and ensure that he cannot go to ground. Hopefully, Kumbhani can be arrested and BitConnect victims will have a chance to recoup more of their losses.
