Man arrested by ED in crypto extortion case of Rs 1,232.5 crore
According to the ED, Bhatt had invested in Kumbhani's company and to recover his investment, he kidnapped two of Kumbhani's employees and extorted 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in cash to release them.
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Image used for representational purposes only. (File photo)The Enforcement Directorate’s (ED) Ahmedabad Zone has arrested a man under the Prevention of Money Laundering Act (PMLA) in an investigation regarding the extortion of 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.5 crore in cash, worth Rs 1,232.5 crore in all.
The ED initiated its investigation against Shailesh Babulal Bhatt, who was arrested on August 13, on the basis of two cheating cases registered by Surat CID (Crime) against Satish Kumbhani, the promoter of Bitconnect Coin who allured the people to invest in Bitconnect Coin in 2017-18. Soon after, Kumbhani had abruptly closed Bitconnect Coin and fled.
According to the ED, Bhatt had invested in Kumbhani’s company and to recover his investment, he kidnapped two of Kumbhani’s employees and extorted 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in cash to release them.
In a statement on Saturday, the ED said its investigation into Bhatt has revealed that he distributed the proceeds of crime, worth Rs 289 crore, to his accomplices in lieu of their active participation in the kidnapping and extortion, which was further used to purchase immovable properties, gold and other assets. So far, movable and immovable properties worth Rs 442 crore have been attached by ED.
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