India’s Directorate of Enforcement Takes $190M in BitConnect Fraud Case

India’s Directorate of Enforcement has seized cryptocurrency valued at nearly $190 million in connection with the BitConnect fraud investigation.

• Highlights:
  • A significant portion of the seized assets includes around 16.5 billion rupees (approximately $190 million), additional cash, and a luxury vehicle during their inquiry into BitConnect’s fraudulent activities.
  • The fraud scheme, which began in 2016, was operated by Satish Kumbhani, who raised billions for a scheme promising high returns but eventually collapsed in 2018.

The investigative agency’s findings suggest that the claims made to investors regarding asset management were misleading. Funds were reportedly misappropriated for personal gain, not used for trading as advertised.

To cover their tracks, a “complex web of transactions” involving various crypto wallets was employed to obscure the ultimate owners. However, with extensive tracking and intelligence gathering, the agency was able to uncover the true nature of the transactions and locate the digital currency in question.