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U.S. Authorities appealed CID to cease the property of the promoters of BitConnect

September 13, 2018 09:47
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Illinois and Aragon authorities spoke to the agents of the Criminal Investigation Department of India (CID) to cease the property of the promoters of BitConnect scam venture because the natives of these states had invested into the organization and lost their money.   

Scam details

One promoter has been captured, and the specialists are finding another who apparently took care of the overall tasks of the organization and may have a lot of BTC belonging to investors. It is suspected that the promoters have absconded Rupees 41 thousand crore which is approx. $5.66 billion U.S. dollars.


A CID crime official said, “Those who invested in this virtual currency company after demonetization are suspected of laundering black money. We will write to the enforcement directorate and income tax authorities to probe such investors.” 

Allegedly, the company was placed in the sum immediately after the demonetization of high-value bank notes.  Two BitConnect promoters, Satish Kumbhani, and Divyesh Darji started their crypto scam project after the country’s demonetization in December 2016, the CID investigators reported.

One of the suspects in the robbery of digital assets, the previous leader of BitConnect Divyesh Darji, was captured in late August 2018. He is blamed for holding seminars, at which Darji offered BitConnect investors 800% returns per annum.

He offered investors to exchange Bitcoins for BitConnect venture tokens, which they could trade on the stock exchange or on which they receive interest. Individuals contributed their Bitcoins because at that time, one BitConnect coin was worth about $360 and they became fascinated with the attractive returns guaranteed by BitConnect.

Nonetheless, in January 2018, authorities halted the activity when they speculated that it was nothing more than the Ponzi scheme since it operated a multi-layered referral system that guaranteed exceptionally higher returns.

Allegedly, Divyesh Darji got a commission of 10% of the sum contributed by every investor. Darji had acquired ventures of Rs 4,100 crore which is approx. $566 million while the aggregate sum Reportedly, Divyesh Darji received a commission of 10% of the amount contributed by each investor. Darji had brought in investments of Rs 4,100 crore while the total amount invested in Bitconnect could be around Rs 41,000 crore.

Crypto investment fraud gains attention

The crypto money fraud became exposed when a Surat-based builder, Shailesh Bhatt, lodged a complaint against Jagdish Patel (SP of Amreli that time), Anant Patel (a local crime branch inspector), and former Dhari MLA, Nalin Kotadiya, for capturing him and demanding of Bitcoin worth Rs 12 crore.

However, Bhatt was not completely innocent in the matter. Apparently, he was also involved in an extortion case where he and his partner had detained and extorted cryptocurrencies from another party.

The CID official stated,

“The investigation found that Bhatt had invested Rs 2 crore ($275,000) in BitConnect and after the company shut shop in January 2017, he kidnapped an employee of BitConnect, Dhaval Mavani, and extorted Bitcoins, Litecoins and cash worth Rs 155 crore ($25 million) from him.”

Well, MLA, Nalin Kotadiya was arrested by the police in Maharashtra this Sunday, September 9.


CID authorities said that they had recovered BitConnect coins from Darji’s e-wallet, however, its esteem is now somewhere in the range of $3 and $4 per BitConnect coin and they would prefer not to cash them out at present and will deposit the money in the account meant for money seized in this case.

Presently, CID are searching for the second suspect, Satish Kambhani. As indicated by recent reports, he was underground in South Korea, and currently moved to Dubai. He administered the global exchanges of BitConnect, so the police expect that his crypto account holds a whooping amount in Bitcoins.

Manisha Agrawal is a cryptocurrency and blockchain news writer. She is a Blockchain enthusiast and having a deep interest in it. Other than this, she has written various blogs on travel, business, technology, food, and many more.


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