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- Police in India have arrested a man who abducted two employees linked to the founder of the infamous BitConnect scam
- The police said that the man wanted to use the abduction to recover what he lost in the scam
- The BitConnect scam stole over $2 billion from victims
Police in India have arrested a man for kidnapping two persons linked to the creator of BitConnect, Satish Kumbhani, with hopes of recovering the funds he lost in the scam. The Indian Enforcement Directorate (ED) identified the man as Shailesh Babulal Bhatt, adding that he demanded over $125 million in BTC, LTC, and cash. Bhatt paid his accomplices roughly $35 million for their services, a sign that he had lost a lot of money in the scam that thrived by promising unrealistic returns on investment.
$50 Million Recovered
According to the ED, Bhatt was arrested on money laundering allegations. He was arrested after the police filed First Information Reports (FIR), a document that Indian law enforcement agencies use to commence an investigation.
The ED disclosed that it had recovered over $50 million worth of assets bought by Bhatt and his accomplices using funds extorted during the kidnapping. The police said that they’re still investigating Bhatt and the kidnapping.
BitConnect collapsed in 2018 after being in operation for approximately two years. Within the two years, it siphoned over $2 billion from 4,000 victims in close to 100 countries.
Lead BitConnect Promoter Sentenced
Bhatt’s arrest comes three years after the United States securities watchdog, SEC, charged Kumbhani and after four BitConnect promoters agreed to settle with the SEC by paying over $4 million.
In 2021, BitConnect victims were on track to share around $56 million in crypto recovered from the scam’s lead promoter Glenn Arcaro who was later sentenced to 38 months in prison.
With Bhatt using unorthodox means to recover his funds, it’s to be seen whether scam victims will invent ways to hunt down malicious actors to recover their funds.
The post BitConnect Victim Kidnaps Ex-employees to Recover Losses appeared first on FullyCrypto.