Indian authorities seize $190M in crypto tied to BitConnect Ponzi scheme
2025-02-16
Category: None

Indian authorities have seized nearly $190 million in crypto associated with Bitconnect amid an ongoing investigation into the global Ponzi scheme, which collapsed in 2018.
“The Enforcement Directorate (ED), Ahmedabad, has seized cryptocurrency worth Rs 1,646 crore during its investigation into BitConnect cryptocurrency fraud in which numerous depositors were allegedly duped in the name of securities investment,” a Feb. 15 local report said.
BitConnect investigation continues looking at other promoters involved
The ED also reportedly seized ₹13,50,500 (around USD 15,582), a sport utility vehicle (SUV), and electronic devices during raids in Gujarat on Feb. 11 and 15.
The seized assets reportedly belonged to associates of the Bitconnect Ponzi scheme, which saw 4,000 investors across 95 countries lose an estimated $2.4 billion. Launched in 2016, Bitconnect collapsed in 2018.
Bitconnect founder Satish Kumbhani — who was charged by the US Department of Justice in February 2022 — reportedly built a global network of promoters, paying them commissions to promote the Ponzi scheme.
“During the period from November 2016 and January 2018, the accused persons allegedly collected money from investors worldwide, including those from India, the ED said,” the report said.
Some victims of the Ponzi scheme even took matters into their own hands.
In August 2024, the ED in Ahmedabad said that Shailesh Babulal Bhatt, who lost money investing in BitConnect Coin (BCC), allegedly teamed up with accomplices to kidnap two of Kumbhani’s employees, extorting 2,091 Bitcoin, 11,000 Litecoin, and approximately $1.7 million (145 million Indian rupees) for their release.
The ED said Bhatt took this action to “recover his investment.”
Meanwhile, the FBI’s “Operation Level Up” said it saved potential crypto fraud victims roughly $285 million between January 2024 and January 2025.