India Seizes $190 Million in Crypto Linked to BitConnect Fraud

India's anti-money laundering unit seized approximately 16.5 billion rupees ($190 million) in cryptocurrencies, cash, and a Lexus car linked to the BitConnect fraud investigation.

Key points:

  • BitConnect was founded in 2016 by Satish Kumbhani, who raised billions through a Ponzi scheme promising 10% returns.
  • The scheme collapsed in 2018, leading to a California judge ordering $17 million in restitution to victims in 2023.
  • Kumbhani is indicted in the U.S. and wanted in India.
  • The Directorate of Enforcement stated that the investment claims were fraudulent, with funds diverted for personal use.
  • A network of transactions via multiple crypto wallets obscured the owners' identities, but tracking efforts revealed the involved wallets and locations of digital devices containing the cryptocurrencies.