Indian authorities have arrested a man for allegedly kidnapping two associates of BitConnect's creator to extort $125 million in cryptocurrency to recover his investment.
In a shocking turn of events, Indian law enforcement arrested an investor who allegedly resorted to kidnapping and extortion to recover his losses from the notorious BitConnect Ponzi scheme. The investor, Shailesh Babulal Bhatt, is accused of kidnapping two associates of BitConnect's creator, Satish Kumbhani, and extorting millions in cryptocurrency. This incident underscores the desperate measures some investors are willing to take after falling victim to fraudulent schemes.
Key Points:
The Alleged Crime: Shailesh Babulal Bhatt, an investor who lost money in the BitConnect Ponzi scheme, allegedly kidnapped two employees linked to BitConnect’s creator, Satish Kumbhani, to extort cryptocurrency.
Ransom Demands: Bhatt and his accomplices demanded 2,091 Bitcoin, 11,000 Litecoin, and $1.7 million in cash, totaling $125 million, for the release of the kidnapped individuals.
BitConnect’s Collapse: BitConnect, which launched in 2016, collapsed in 2018, leaving investors from 95 countries defrauded of an estimated $2.4 billion.
Ongoing Investigation: The Indian Enforcement Directorate has arrested Bhatt under the Prevention of Money-Laundering Act (PMLA) and recovered properties worth $52 million (4.4 billion Indian rupees) as part of their ongoing investigation. Bhatt's actions reveal the severe impact of financial losses from fraudulent schemes and the lengths to which some may go to recover their investments.
BitConnect’s Founder and Associates: BitConnect founder Satish Kumbhani has been charged with running a Ponzi scheme but remains at large. Other promoters, including Glenn Arcaro and John Bigatton, have faced legal consequences for their involvement in the scam.
This case highlights the extreme measures some individuals might take in response to financial ruin caused by fraudulent schemes like BitConnect. As law enforcement continues to investigate and recover assets, the incident serves as a stark reminder of the risks associated with investing in unregulated and high-risk ventures.
Source: Cointelegraph
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