Indian authorities seize $288 million worth of cryptocurrency owned by BitConnect founder who is currently on the run after being indicted on investment fraud charges

The Indian Enforcement Agency announced that it had seized approximately $190 million worth of cryptocurrency from the founder of BitConnect, who was a fugitive from indictment for fraud. This is believed to be the largest seizure in a law enforcement investigation in India to date.

Ahmedabad: ED seizes cryptocurrency worth Rs1,646 crore in Bitconnect investment fraud | Ahmedabad News - The Indian Express

https://indianexpress.com/article/cities/ahmedabad/ahmedabad-ed-seizes-cryptocurrency-worth-rs1646-crore-in-bitconnect-investment-fraud-9838068/

ED makes biggest single-day seizure as part of $2.4bn global crypto scandal - The Economic Times
https://economictimes.indiatimes.com/news/india/ed-makes-biggest-single-day-seizure-as-part-of-2-4-bn-global-crypto-scandal/articleshow/118223898.cms

BitConnect was a cryptocurrency lending platform that operated from November 2016 to January 2018, and advertised that 'depositing funds would earn you 40% monthly profits' and 'providing an annual return of 3,700%.' However, it was discovered that the platform actually used the funds collected from new investors to pay interest to existing platform participants, and the platform was indicted as a type of Ponzi scheme .

BitConnect, a cryptocurrency lender that advertised a 3,700% annual interest rate return, is sued for fraud - GIGAZINE

The promoter of BitConnect in the United States was arrested and sentenced to 38 months in prison in September 2022, but BitConnect founder Satish Kumbahani was on the run. Kumbahani is known to have defrauded individual investors around the world, and in the United States alone he has been accused of six investment frauds, including those related to BitConnect.

By thoroughly tracing complex transactions designed to conceal the origins and ownership of the wallets, combined with local intelligence, the Ahmedabad Division of the Indian Enforcement Agency was able to seize approximately $190 million in cryptocurrency from Kumbahani.

The Ahmedabad Police Department has also already seized movable and immovable assets owned by Kumbahani worth approximately $56.4 million (approximately 8.56 billion yen).

According to sources, a lookout has already been issued to prevent Kumbahani from fleeing the country, and the Enforcement Directorate plans to arrest him in the coming days. Kumbahani faces multiple charges, including conspiracy to commit wire fraud and money laundering, and if convicted on all charges, could face up to 70 years in prison.