ED Seizes $190 Million in Crypto Assets
The Indian Law Enforcement Agency (ED) has made a breakthrough in BitConnect cryptocurrency fraud, seizing $190 million worth of crypto assets. The crackdown was a Ponzi scheme that BitConnect started in 2016 a few years after BitConnect, which deceived global investors, causing its token to go bankrupt from $521 to just $1.
India’s ED catches $190 million in cryptocurrency
Ed of Ahmedabad on February 15 About 16.46 crore rupees ($190 million). The move was taken under the Money Laundering Act (PMLA) of the First Information Report (FIR) filed by the Surat CID Crime Police Department.
With cryptocurrency, authorities seized $15,582 in cash, a luxury SUV and several digital devices during the raid in Gujarat.
ED discovered that BitConnect’s operators used multiple crypto wallets to create a transaction network. However, through advanced tracking technology and intelligence gathering, investigators identified key wallets and their controllers, resulting in the recent crackdown.
BitConnect fraud background
BitConnect operates as an unregistered entity, creating a massive network of enablers that earn commissions by recruiting new investors. The platform’s founder Satish Kumbhani was accused of planning fraud by the U.S. Department of Justice in February 2022.
Under his leadership, BitConnect managed to collect an astonishing $2.4 billion before closing in 2018 under the cessation order of U.S. regulators.
With ongoing investigations in the emergency department and recent asset seizures, authorities are stepping up their responsibilities to bring the culprit to justice.
