India’s Enforcement Directorate (ED) has seized digital assets worth approximately INR 1,646 crore (about $190 million) in a Prevention of Money Laundering Act (PMLA) case connected to the BitConnect Ponzi scheme.

According to a press release dated February 15, 2025, the ED conducted multiple raids across Gujarat on February 11th and 15th, 2025 where they confiscated significant amounts of cryptocurrency, cash, an SUV, and other digital devices.

The BitConnect scam deceived around 4,000 investors across 95 countries, with total losses estimated at $2.4 billion.

In 2022, the US Department of Justice (DoJ) indicted Satish Kumbhani for orchestrating a global Ponzi scheme. US Attorney Randy Grossman stated, “This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion. The US Attorney’s Office and our law enforcement partners are committed to pursuing justice for victims of cryptocurrency fraud.”

ED’s Intervention In BitConnect Case

According to local media reports dated February 15, 2025, the Criminal Investigation Department (CID) filed numerous First Information Reports (FIRs) prompting the ED to start investigating this case in 2018. The Gujarat police officially booked Kumbhani in 2022.

The ED deployed domain experts to trace funds across several crypto wallets, confirming many transactions utilized the dark web for fund concealment. Major seizures included:

• Cryptocurrency valued at INR 1,646 crore traced to Kumbhani and his associates.
• ₹50 Lakhs in cash.
• An SUV purchased with illicit funds.
• Various digital devices likely containing crucial evidence.

Earlier, the ED attached approximately INR 489 crore ($6 million) in movable and immovable properties linked to the BitConnect scam.

Fictitious Returns Offered

Kumbhani launched BitConnect in 2016, providing a platform that promised unrealistic returns through a “Lending Program.” BitConnect’s operations relied on trading bots that guaranteed a 40% return on investments. However, no verifiable trading occurred, and earlier investors were paid using new investors’ funds. This scheme ultimately collapsed in January 2018.

Key Takeaways:

• $190 million in crypto seized by Indian authorities related to BitConnect.
• BitConnect utilized a dysfunctional trading bot and multi-level marketing to scam investors.
• Fraudsters redirected funds from new investors to pay returns to earlier ones, maintaining the Ponzi scheme until its abrupt shutdown.