Shailesh Babulad Bhatt has been arrested in Gujarat, India, on charges of money laundering in a kidnapping and extortion case related to a cryptocurrency crime worth over Rs 1,200 crore ($144 million), the Financial Crimes Enforcement Directorate (ED) said.
Bhatt was arrested following an investigation launched based on complaints from Surat police against Satish Kumbhani, the promoter of Bitconnect Coin, who had defrauded investors and disappeared after the Bitconnect platform was shut down in January 2018.
Shailesh Bhatt, who invested in Bitconnect, kidnapped two of Kumbhaniâs employees to get back his funds. He extorted 2,091 BTC, 11,000 LTC, and Rs 14.5 crore in cash. The ED investigation uncovered a complex scheme to use the proceeds to buy real estate and other valuable assets, indicating serious violations of the law.
Analysts predict that Indian regulators will seek greater transparency and oversight of cryptocurrency transactions, which could include mandatory licensing of exchanges and strict monitoring of transactions. The introduction of such measures will help improve trust in digital currencies and create a safer environment for investment.
