ED held Gujarat man involved in kidnapping and crypto-linked extortion cases

The Enforcement Directorate (ED) Ahmedabad Zone has arrested a man from Gujarat who has been allegedly involved in kidnapping and extortion cases, including one related to cryptocurrency worth more than Rs 1,200 crore. He has been arrested under the anti-money laundering law.  

As per ED, Shailesh Babulal Bhatt was taken into custody on August 13, 2024.  

ED started the investigation after two FIRs were filed by the Surat Police CID against one Satish Kumbhani.

The agency said Kumbhani was the promoter of a company called Bitconnect Coin, which lured investors to put their money in its schemes during 2017-18.

Between 2017-18, Kumbhani had lured people into investing in Bitconnect Coin and then shut down its platform in January 2018 and fled after "swindling" public money.

Bhatt had also invested money in the company's schemes.

To recover his money, Bhatt "kidnapped" two of Kumbhani's employees and "extorted" 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in cash as ransom.

As per ED, the crypto funds are worth Rs 1,232.50 crore according to current exchange rates.

Separately, the ED said, Bhatt distributed the proceeds of crime worth Rs 289 crore to his accomplices in lieu of their active participation in kidnapping and extortion that was further used to purchase immovable properties, gold and other assets.