India’s Enforcement Directorate (ED) has made a breakthrough within the BitConnect cryptocurrency fraud case, seizing $190 million value of crypto belongings. The crackdown comes years after BitConnect, a Ponzi scheme that began in 2016, defrauded traders worldwide, resulting in the collapse of its token from $521 to simply $1.
India’s ED Seized $190 Million In Crypto
On February 15, the ED in Ahmedabad launched an announcement confirming the seizure of digital belongings value roughly Rs 1,646 crore ($190 million). This motion was taken underneath the Prevention of Cash Laundering Act (PMLA) following First Info Experiences (FIRs) filed by the CID Crime Police Station in Surat.
Together with cryptocurrency, authorities seized $15,582 in money, a luxurious SUV, and a number of other digital units throughout raids performed in Gujarat.
The ED found that BitConnect’s operators had created an internet of transactions utilizing a number of crypto wallets. Nevertheless, by way of superior monitoring strategies and intelligence gathering, investigators recognized the important thing wallets and their controllers, resulting in the current crackdown.
Background of BitConnect Fraud
BitConnect, which operated as an unregistered entity, established an enormous community of promoters who earned commissions by recruiting new traders. The platform’s founder, Satish Kumbhani, was charged by the U.S. Division of Justice in February 2022 for masterminding the fraud.
Below his management, BitConnect managed to gather a staggering $2.4 billion earlier than shutting down in 2018, following cease-and-desist orders from U.S. regulators.
With the ED’s ongoing investigation and the current seizure of belongings, authorities are ramping up efforts to carry the culprits to justice.
