India Seizes Huge Cryptocurrency Haul Worth $190 Million in Connection with BitConnect Investigation
Cops seize $190M in crypto linked to BitConnect fraud, driver's fancy whip, and electronics
The Indian police have netted a huge haul, snatching $190 million worth of cryptocurrency linked to the BitConnect scam. This jaw-dropping figure was reported by the Indian Express.
During the raids on February 11 and 15, theze cops also confiscated some 15,500 rupees in cash, a snazzy motor vehicle, and electronic devices.
The authorities have been tracing a labyrinth of transactions involving multiple crypto wallets, some of which were used on the dark web. With the help of intelligence data, they managed to identify locations where digital assets were stored.
Remember, the BitConnect rip-off ran from 2016 to 2018. It lured investors with promises of 40% monthly returns, or 1% per day. These returns were supposed to be generated by a trading bot. However, things didn't go as planned, and in January 2018, investors filed a class-action lawsuit. They accused the platform of operating a Ponzi scheme and claimed that the platform didn't engage in real trading. Instead, they alleged, payouts were made using funds from new investors.
The BitConnect fiasco caused a gut-wrenching $2.4 billion in losses, affecting around 4,000 victims across 95 countries.
In August 2024, Indian authorities arrested a local resident suspected of kidnapping two BitConnect employees and extorting $125 million in cryptocurrency. The suspect claimed he was trying to recover his lost investment.
Earlier, in January 2025, a UK court convicted seven gang members for kidnapping a crypto investor to extort funds. It's worth noting that BitConnect is also under investigation in the US, where it faces a massive $2 billion SEC fraud charge.
The current status of investigations and prosecutions related to the BitConnect fraud scheme in India is marked by active judicial scrutiny, ongoing Central Bureau of Investigation (CBI) probes, and strong calls from the Supreme Court for regulatory clarity on cryptocurrency.
The legal complexities surrounding cryptocurrencies have been a hot topic in the Supreme Court hearings. Justices have questioned how these digital assets can be legally proven and handled in fraud cases, reflecting significant challenges in dealing with crypto crimes under existing laws.
The Indian Supreme Court has emphasized the necessity of specialist consultation to help formulate effective regulations due to the technical complexities surrounding cryptocurrencies. They have likened unregulated cryptocurrency transactions to the hawala system, an informal, unregulated money transfer method known for facilitating illicit activities, expressing concerns about financial stability risks if crypto remains unregulated.
The Supreme Court’s broader message has been that ignoring the presence and growth of crypto markets is no longer viable, and urgent steps towards transparency, proper oversight, and legal frameworks are needed to curb fraud and money laundering risks. This reflects a critical transition phase where India is confronting the fallout from one of the largest cryptocurrency fraud cases while simultaneously shaping the future of crypto regulation in the country.
- The seized cryptocurrency, valued at $190 million, originates from multiple crypto wallets that were traced in the labyrinth of transactions related to the BitConnect finance scam.
- The BitConnect scam, under investigation not only in India but also in the US, has been compared to the crime-and-justice issue of the hawala system due to its involvement in general-news topics such as fraud, extortion, and money laundering.
