- Indian authorities seized $190 million in crypto tied to the infamous BitConnect scam.
- The Enforcement Directorate (ED) raided multiple locations, confiscating assets and cash.
- Founder Satish Kumbhani remains a fugitive, but officials have tracked him to Ahmedabad.
- Victims, including foreign investors, are hoping for fund recovery as investigations continue.
In a major breakthrough, Indian authorities have seized $190 million worth of cryptocurrency linked to the notorious BitConnect Ponzi scheme that collapsed in 2018.
The Enforcement Directorate (ED) carried out raids on February 11 and 15 in Gujarat, confiscating digital assets, ₹13.5 lakh in cash ($15,500), an SUV, and electronic devices as part of their investigation.
This move follows multiple complaints filed by victims in Surat, many of whom lost their life savings to the fraudulent scheme.
BitConnect’s Fake Investment Promises and Massive Fraud
Founded in 2016, BitConnect lured in over 4,000 investors across 95 countries, promising guaranteed returns of 40% per month through a so-called “volatility software trading bot.”
https://twitter.com/RobinHill85/status/1891139389847470124
However, authorities confirmed that no real trading took place—instead, funds were funneled into wallets controlled by BitConnect’s founder, Satish Kumbhani, and his associates.
At its peak, the scam amassed a staggering $2.4 billion before collapsing in January 2018, leaving investors in financial ruin.
Kumbhani was charged by U.S. authorities in 2022 but managed to evade capture. Now, Indian officials have tracked him to Ahmedabad and issued a lookout notice to prevent his escape.
Dark Web Transactions and Attempts to Recover Stolen Funds
Investigators found that BitConnect used the dark web to hide transactions, making it difficult to trace stolen funds.
https://twitter.com/ImNotTheWolf/status/1891350263539310595
However, forensic experts identified key wallets and assets, leading to the recent crypto seizure. Authorities are now working to return funds to defrauded investors, including international victims.
Meanwhile, some victims took extreme measures to recover their money.
In August 2024, a businessman named Shailesh Babulal Bhatt, who lost money in BitConnect Coin (BCC), allegedly kidnapped two of Kumbhani’s employees in a desperate bid for justice.
Bhatt and his associates reportedly forced the victims to transfer 2,091 Bitcoin, 11,000 Litecoin, and ₹145 crore ($1.7 million) before releasing them.
Authorities Step Up Crypto Fraud Crackdowns
The Enforcement Directorate’s crackdown on BitConnect is part of India’s larger effort to combat crypto fraud, as scams continue to impact investors.
https://twitter.com/SujalJethwani/status/1891070449007620588
At the same time, the FBI’s “Operation Level Up” initiative reportedly prevented nearly $285 million in potential crypto fraud losses between January 2024 and January 2025.
As the investigation progresses, officials are preparing to take Kumbhani into custody and seek justice for thousands of victims who lost their money in one of the biggest crypto scams in history.
