Catenaa, Thursday, February 27, 2028 – India law enforcement authorities have seized nearly $190 million in crypto assets tied to the BitConnect Ponzi scheme, which defrauded investors before collapsing in 2018. The Enforcement Directorate (ED) reported the seizure of Rs 1,646 crore (approximately $190 million) in cryptocurrency, as well as $15,550 in cash, an SUV, and digital devices during searches in Gujarat between February 11 and 15.
The ED’s investigation centers on the activities of BitConnect, which allegedly operated between November 2016 and January 2018. The scheme’s promoters, led by co-founder Satish Kumbhani, attracted global investors, including many in India, by promising daily returns of up to 1%, claiming the scheme could yield as much as 3,700% annually. Investors were encouraged to deposit Bitcoin (BTC) into the program, which purportedly used a trading bot to generate profits.
However, authorities discovered that the promised returns were fictional, and instead of investing the funds in trading, the perpetrators controlled digital wallets where the assets were deposited. These wallets conducted transactions through the dark web to obscure their activities. By tracking on-chain transactions and gathering intelligence, the ED was able to trace the crypto assets and devices linked to the scheme.
The investigation into BitConnect’s operations continues as the ED works to hold those responsible accountable for defrauding investors globally.
