Indian Authorities Seize $190M in Crypto Linked to BitConnect Ponzi Scheme
Indian authorities have seized nearly $190 million worth of cryptocurrency tied to BitConnect in connection with an ongoing investigation into the collapsed global Ponzi scheme. BitConnect, which launched in 2016, ceased operations in 2018 after being accused of defrauding investors on a global scale.
According to a local report dated February 15, the Enforcement Directorate (ED) in Ahmedabad seized cryptocurrency valued at ₹1,646 crore (approximately $190 million) as part of its probe into the fraud. Numerous investors were reportedly misled under the guise of securities investments.
Seizure of Additional Assets
In addition to the crypto assets, the ED reportedly confiscated ₹13,50,500 (around $15,582), a sport utility vehicle (SUV), and electronic devices during separate raids conducted on February 11 and 15 in Gujarat. These assets allegedly belonged to individuals associated with BitConnect, which is said to have scammed over 4,000 investors across 95 countries, resulting in losses totaling an estimated $2.4 billion.
BitConnect’s Founder and Global Network of Promoters
Satish Kumbhani, the founder of BitConnect, was charged by the U.S. Department of Justice in February 2022. Kumbhani is accused of creating a global network of promoters who earned commissions for promoting the Ponzi scheme. Between November 2016 and January 2018, the promoters allegedly collected funds from investors worldwide, including Indian nationals.
Some victims of the scheme even took drastic measures to recover their losses. In August 2024, the ED reported that Shailesh Babulal Bhatt, a BitConnect investor, allegedly collaborated with accomplices to kidnap two employees of Kumbhani. Bhatt reportedly extorted 2,091 Bitcoin, 11,000 Litecoin, and ₹145 million (approximately $1.7 million) as ransom for their release. The ED stated that Bhatt’s actions were motivated by his desire to recover his lost investment.
Meanwhile, the FBI’s “Operation Level Up” claimed to have prevented potential crypto fraud losses of around $285 million between January 2024 and January 2025, highlighting ongoing global efforts to tackle cryptocurrency-related scams and protect investors.
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