India’s Crackdown on BitConnect: ED Seizes $190 Million in Crypto Assets

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India’s Enforcement Directorate (ED) has made a breakthrough in the BitConnect cryptocurrency fraud case, seizing $190 million worth of crypto assets. The crackdown comes years after BitConnect, a Ponzi scheme that started in 2016, defrauded investors worldwide, leading to the collapse of its token from $521 to just $1. 

India’s ED Seized $190 Million In Crypto

On February 15, the ED in Ahmedabad released a statement confirming the seizure of digital assets worth approximately Rs 1,646 crore ($190 million). This action was taken under the Prevention of Money Laundering Act (PMLA) following First Information Reports (FIRs) filed by the CID Crime Police Station in Surat. 

Along with cryptocurrency, authorities seized $15,582 in cash, a luxury SUV, and several digital devices during raids conducted in Gujarat.

The ED discovered that BitConnect’s operators had created a web of transactions using multiple crypto wallets. However, through advanced tracking techniques and intelligence gathering, investigators identified the key wallets and their controllers, leading to the recent crackdown.

Background of BitConnect Fraud

BitConnect, which operated as an unregistered entity, established a vast network of promoters who earned commissions by recruiting new investors. The platform’s founder, Satish Kumbhani, was charged by the U.S. Department of Justice in February 2022 for masterminding the fraud. 

Under his leadership, BitConnect managed to collect a staggering $2.4 billion before shutting down in 2018, following cease-and-desist orders from U.S. regulators.

With the ED’s ongoing investigation and the recent seizure of assets, authorities are ramping up efforts to bring the culprits to justice.