CoinInsight360.com logo CoinInsight360.com logo
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Coinpaprika 2025-02-17 07:22:44

India Seizes $189M in Crypto in BitConnect Fraud Crackdown

Indian authorities have made a major breakthrough in the BitConnect scam investigation , seizing cryptocurrency assets worth $189 million. The Enforcement Directorate (ED) in Ahmedabad conducted the operation, tracking the assets through detailed analysis of wallet transactions and dark web activity. Alongside the digital assets, officials also confiscated a luxury vehicle, cash, and electronic devices. The crackdown is part of an ongoing effort to dismantle the fraudulent scheme that operated from 2016 to 2018. BitConnect lured investors with promises of high returns, claiming to use an automated trading bot to generate profits. However, authorities confirmed it was nothing more than a Ponzi scheme, where funds from new investors were used to pay earlier participants. Victims were encouraged to deposit Bitcoin or cash into the platform, believing they would earn massive gains. Instead, the money was funneled into wallets controlled by the scheme’s operators. Investigators traced the movement of these funds across multiple wallets, many of which were intentionally hidden using the dark web. Despite the complex laundering attempts, detailed tracking of IP addresses, wallet flows, and blockchain activity led authorities to the assets. This latest seizure follows legal action against BitConnect’s founder, Satish Kumbhani , and its chief US promoter, Glenn Arcaro. Arcaro was sentenced to 38 months in prison in 2022 and ordered to repay $17.6 million to victims across 40 countries. Meanwhile, Kumbhani faces multiple charges, including wire fraud, commodity price manipulation, and international money laundering. If convicted, he could be sentenced to up to 70 years in prison. However, he remains a fugitive and has yet to be captured. The BitConnect scheme defrauded investors of an estimated $2.4 billion before collapsing when authorities uncovered its deceptive practices. The ED’s latest action highlights the continued pursuit of justice for victims and reinforces global efforts to combat financial fraud in the crypto sector.

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.