The Enforcement Directorate (ED) has confiscated Rs 1,646 crore (approx $197 million) worth of cryptocurrencies in BitConnect scam. The operation, which was conducted in Ahmedabad, also resulted in the seizure of ₹13.50 lakh in cash, an SUV, and several digital devices, the officials said.
The BitConnect scam, which spanned globally, duped investors by promising massive returns through a supposedly “high-tech” trading bot. Founded by Satish Kumbhani, the platform promised up to 40% monthly profits by converting Bitcoin (BTC) into BitConnect’s own digital currency (BCC). This “Lending Program” also included a referral system, resembling a multi-level marketing (MLM) scam, where investors were encouraged to bring in more people.
The scam ran from November 2016 to January 2018, promising investors up to 40% monthly returns through a so-called “volatility software trading bot.” People were lured into depositing Bitcoin (BTC), which was then converted into BitConnect’s own cryptocurrency (BCC). The platform also had a multi-level marketing (MLM) structure, rewarding users for bringing in new investors, typical of Ponzi schemes.
The platform collapsed in January 2018 after global regulators stepped in, leaving thousands of investors with massive losses. The ED’s investigation, which began in 2018 based on FIRs filed by Surat’s CID, has already resulted in the attachment of ₹489 crore worth of properties linked to the scam.
This isn’t the first time the ED has taken action against BitConnect. Earlier, it attached assets worth ₹489 crore in connection with the case. Authorities have also confirmed that foreign nationals invested in BitConnect, and Kumbhani remains under investigation by US federal agencies.
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