Indian authorities have seized crypto worth nearly $190 million. The money is linked to BitConnect, a Ponzi scheme that collapsed in 2018. The Enforcement Directorate (ED), Ahmedabad, led the operation. Officials conducted raids in Gujarat on Feb. 11 and 15.
They seized Rs 1,646 crore in crypto, Rs 13,50,500 in cash, an SUV, and digital devices. The ED launched its probe under the Prevention of Money Laundering Act (PMLA). The case is based on FIRs filed by CID Crime Police in Surat. Investigators found that from November 2016 to Jan. 2018, the accused collected funds from global investors, including Indians.
Crypto scam investigation leads to major seizure
BitConnect operated without legal incorporation. Its founder built a vast promoter network, which earned commissions by bringing in new investors. BitConnect claimed to have a trading bot. The company promised high returns, up to 40% per month. It displayed fake profits on its website. Investors saw an average return of 1% daily or 3,700% per year.
The ED found these claims to be false. BitConnect never invested user funds. Instead, the accused transferred funds to their wallets. They misled investors while siphoning money for personal gain. Authorities examined multiple crypto wallets.
Transactions were routed through the dark web, and the accused tried to erase their digital footprints. Despite this, officials tracked the wallets and identified key locations. They seized devices containing crypto assets.
Crackdown expands with more arrests expected
Earlier, the ED had frozen properties worth Rs 489 crore. Investigators found that foreign nationals also invested in BitConnect. The case has links to the United States. Federal authorities there are probing the main suspect. The ED is continuing its investigation. More seizures and arrests may follow. Nevertheless, authorities are determined to uncover the full extent of the fraud.
