365Crypto
India Seizes $190M in Crypto Linked to BitConnect Ponzi Scheme
Indian authorities have confiscated nearly $190 million in cryptocurrency tied to BitConnect, a fraudulent investment scheme that collapsed in 2018. The Enforcement Directorate (ED) is investigating the scam, which duped thousands of investors worldwide.
Assets Seized in Gujarat Raids
During raids on Feb. 11 and 15 in Gujarat, officials also seized cash, an SUV, and electronic devices. The assets reportedly belonged to associates of BitConnect, which swindled about $2.4 billion from 4,000 investors across 95 countries.
How BitConnect Operated
BitConnect, launched in 2016, promised investors high returns through crypto trading. Founder Satish Kumbhani built a global network of promoters, rewarding them for recruiting new investors. The scheme collapsed in early 2018, leading to legal action worldwide.
Investors Took Matters into Their Own Hands
Some victims turned to extreme measures. In 2024, Indian businessman Shailesh Babulal Bhatt, who lost money in BitConnect, allegedly kidnapped two of Kumbhani’s employees. He extorted Bitcoin, Litecoin, and cash worth $1.7 million to recover his losses.
Meanwhile, the FBI’s “Operation Level Up” has helped prevent $285 million in crypto fraud losses from 2024 to 2025.
