Indian ED arrests prime suspect in $148 million crypto extortion case

The Indian Enforcement Directorate (ED) has arrested Shailesh Babulal Bhatt, a resident of Gujarat, in connection with a high-profile cryptocurrency extortion case worth over Rs 1,200 crore (approximately $148 million). Bhatt, who is linked to several kidnapping and extortion cases, was arrested earlier this week, the ED confirmed on Saturday.

Bhatt, who has been involved in several kidnapping and extortion cases, was taken into custody earlier this week, local reports confirmed on Saturday.

The investigation began after the Surat Police CID filed complaints against Satish Kumbhani, the man behind the bankrupt cryptocurrency platform Bitconnect Coin. Bitconnect lured many investors with the promise of high returns in 2017-18. But in January 2018, Kumbhani suddenly shut down the platform and disappeared with investors' money.

Bhatt, who had invested in Bitconnect Coin, decided to take drastic steps to get back his lost money. He allegedly kidnapped two of Kumbhani's employees and demanded ransom in the form of cryptocurrency and cash.

According to ED, Bhatt extorted 2,091 bitcoins ($125 million), 11,000 litecoins and Rs 14.50 crore in cash, now worth Rs 1,232.50 crore ($146 million).

The investigation also revealed that Bhatt shared ₹289 crore ($1.7 million) of the extorted money with his accomplices who helped him in the kidnappings and extortions. The money was used to buy properties, gold and other valuable items.

The ED stated that Bhatt's arrest is part of a larger effort to combat money laundering related to cryptocurrency scams. The ongoing investigation aims to find out more about how the extorted money was used and where it was hidden.

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