India’s Enforcement Directorate Arrests Two in BitConnect Crypto Scam Case

According to India’s Enforcement Directorate, the suspects routed funds via Ethereum, USDT, and layered wallets, with total freezes and seizures nearing INR 21.7 billion as the BitConnect probe advances.

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Summary

India’s Enforcement Directorate arrested Nikunj Pravinbhai Bhatt and Sanjay Kotadia in the BitConnect case. Authorities allege 2,254 BTC were extorted, alongside 11,000 LTC and INR 145 million in cash. Investigators say some funds moved via Ethereum, USDT, and layered wallets. Officials report about INR 190 million frozen and total seizures/freezes around INR 21.7 billion. Earlier figures in the case cited INR 1.45 billion cash, INR 19 billion seized, and INR 217 billion frozen; the investigation remains ongoing.

Terms & Concepts
  • BitConnect: A defunct crypto platform widely recognized as a Ponzi scheme that defrauded investors globally.
  • Ethereum: A blockchain network supporting smart contracts and decentralized applications; its native cryptocurrency is Ether (ETH).
  • USDT: A U.S. dollar–pegged stablecoin issued by Tether, commonly used for transferring value across exchanges and networks.