The Enforcement Directorate (ED) in Ahmedabad arrested Shailesh Babulal Bhatt under the Prevention of Money Laundering Act (PMLA) on August 13, 2024, for his involvement in a massive extortion case. The case revolves around the extortion of 2,091 Bitcoins, 11,000 LiteCoins, and Rs14.5 crore in cash, valued at an estimated Rs1,232.5 crore.
The investigation was initiated by the ED based on two cheating cases filed by the Surat CID (Crime) against Satish Kumbhani, the promoter of Bitconnect Coin, who lured people into investing in the cryptocurrency platform in 2017-18. After the scheme abruptly collapsed, Kumbhani fled the country.
Bhatt, who had invested heavily in Bitconnect Coin, sought to recover his losses by kidnapping two of Kumbhani’s employees. During the kidnapping, Bhatt extorted 2,091 Bitcoins, 11,000 LiteCoins, and Rs14.5 crore in cash. The ED’s investigation into Bhatt revealed that he distributed proceeds worth Rs289 crore to his accomplices, who helped him in the kidnapping and extortion. This illicit money was later used to acquire immovable properties, gold, and other assets.
To date, the ED has attached movable and immovable assets worth Rs442 crore in connection with the case. The investigation continues as the authorities work to trace more assets linked to the crime.