Thomas Daniels
As part of the ongoing investigation into BitConnect, a now-defunct Ponzi scheme, Indian police officials have seized cryptocurrencies worth $190 million (₹1,646 crore).
The Enforcement Directorate (ED) in Ahmedabad, India’s top financial crime investigative agency, carried out several searches around Gujarat on February 11 and 15, according to The Indian Express. Along with the bitcoin, authorities also found an SUV, several electronic equipment, and $16,300 (₹13,50,500) in cash.
The 40% Monthly Return Promise of BitConnect Revealed
The CID Crime Police Station in Surat filed the initial cases that led to the inquiry, which is being carried out under the Prevention of Money Laundering Act (PMLA). According to authorities, BitConnect attracted investors from all across the world, including India, during its operations from November 2016 to January 2018.
With claims of up to 40% monthly returns, the scheme deceptively positioned itself as a high-yield investment program, persuading people to purchase BitConnect Coins. The so-called “volatility software trading bot” promised returns of 1% per day, or 3,700% per year. But investigators found that these numbers were all made up.
In actuality, BitConnect operated as a traditional Ponzi scam, paying previous participants with money from new investors. After receiving cease-and-desist orders from U.S. state regulators, the fraudulent scheme collapsed in 2018, having amassed $2.4 billion over two years.
Investigators Discover a Network of Illicit Deals
A complex network of bitcoin transactions was discovered during the ED’s investigation; many of these transactions were filtered through the dark web to hide their true source. Investigators were able to track several web wallets and locate digital devices that contained the illegal bitcoin in spite of these obstacles.
Prior ED actions, which involved the attachment of assets valued at $56.5 million (₹489 crore), are built upon by this most recent seizure. Additionally, authorities have verified that BitConnect’s investors included foreign citizens. Federal officials in the United States are still looking into the main suspected parties involved in the plot.
