Indian authorities have confiscated nearly $190 million in cryptocurrency linked to Bitconnect, one of the biggest Ponzi schemes in crypto history.
The Enforcement Directorate (ED) in Ahmedabad confirmed the seizure of funds, alongside cash, an SUV, and electronic devices in raids conducted in Gujarat on February 11 and 15. These assets were reportedly connected to individuals involved in the fraudulent investment scheme that lured thousands of investors worldwide with false promises of high returns before collapsing in 2018.
Bitconnect was responsible for $2.4 billion in investor losses across 95 countries, making it one of the most notorious crypto scams in history.
Bitconnect: One of Crypto’s Biggest Scams
Founded in 2016 by Satish Kumbhani, Bitconnect promised massive returns through its lending program, where investors deposited Bitcoin (BTC) in exchange for Bitconnect Coin (BCC).
The scheme relied on a referral-based system, rewarding users for recruiting new investors—a classic Ponzi structure.
By early 2018, global regulators cracked down on Bitconnect, exposing it as a fraudulent operation. The project abruptly shut down, leaving thousands of investors empty-handed.
In 2022, U.S. authorities charged Kumbhani with fraud, alleging that he operated a network of promoters who misled investors in exchange for commissions.
India’s Role in the Bitconnect Scam
The latest Indian enforcement action highlights Bitconnect’s widespread impact on investors in the country. Investigators revealed that the scheme collected significant funds from Indian investors between late 2016 and early 2018.
Seized Assets in India’s Crackdown:
🔹 Cryptocurrency worth $190 million
🔹 Cash totaling ₹13,50,500 (around $24,500 USD)
🔹 An SUV linked to the fraud
🔹 Electronic devices used in the operation
The ED’s report states that these assets were connected to individuals involved in the Bitconnect scam, further deepening the global legal case against Kumbhani and his associates.
The Bizarre Twist: Investors Took Matters Into Their Own Hands
Bitconnect’s victims were not willing to wait for justice.
In 2023, an Indian investor named Shailesh Babulal Bhatt, who lost money in Bitconnect Coin (BCC), allegedly took drastic measures.
What Happened?
🔹 Bhatt, along with accomplices, kidnapped two Bitconnect employees.
🔹 The group forced the employees to transfer 2,091 BTC, 11,000 LTC, and $1.7 million USD before releasing them.
🔹 The incident highlighted the extreme frustration of investors who lost millions in the Ponzi scheme.
While authorities are working to recover stolen funds, this case demonstrates the lasting impact of crypto scams and the desperation of affected investors.
The Bigger Picture: India’s Growing Crypto Regulations
India has been increasing its oversight of the crypto industry, particularly in response to fraudulent schemes like Bitconnect.
🔹 Stricter regulations on crypto exchanges and transactions
🔹 Greater enforcement actions against crypto-related financial crimes
🔹 A growing push to educate investors about crypto risks
With the seizure of $190 million, Indian authorities have set a precedent for stronger crackdowns on crypto fraud, ensuring that bad actors in the industry are held accountable.
Justice Catches Up to Bitconnect
The Bitconnect saga remains one of the largest crypto frauds in history, and with India’s latest enforcement action, authorities continue to unravel its financial web.
While victims may never fully recover their lost funds, the $190 million seizure in India marks another significant step toward justice in one of the most infamous crypto Ponzi schemes ever exposed.
