17 February 2025
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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.