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Indian Officials Confiscate $190 Million in Cryptocurrency Associated with BitConnect Ponzi Operation
The Indian Enforcement Directorate located in Ahmedabad has confiscated cryptocurrencies valued at $190 million associated with the BitConnect Ponzi scheme. This represents one of the largest cryptocurrency seizures in the country to date.
The Directorate conducted its investigation from February 11 to 15, seizing digital assets, $15,570 in cash, a Lexus SUV, and several electronic devices, according to the official statement.
The inquiry was executed under the Prevention of Money Laundering Act (PMLA), 2002. It was initiated based on First Information Reports (FIRs) filed by the Crime Investigation Division (CID) in Surat, as stated in the release.
“Between November 2016 and January 2018, the accused individuals engaged in a fraudulent and unregistered offering and sale of securities in the form of investments in Bitconnect’s alleged ‘Lending Program,’ from investors globally, including those based in India,” the investigations disclosed.
ED, Ahmedabad has conducted search operations on 11/02/2025 and 15/02/2025 in relation to the Bitconnect cryptocurrency fraud, under the provisions of the PMLA, 2002. During the search operations, Proceeds of Crime in the form of various cryptocurrencies valued at Rs. 1646 Crore… pic.twitter.com/EEMFYvFar3
— ED (@dir_ed) February 15, 2025
BitConnect Identified as Ponzi Scheme
BitConnect collapsed in 2018 after the company faced increasing pressure from financial regulators, who issued cease and desist orders.
In 2022, Glenn Arcaro, the platform’s leading U.S. promoter, received a 38-month prison sentence along with $17 million in restitution to victims worldwide.
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According to the Directorate, BitConnect founder Satish Kumbhani utilized a “volatility software trading bot” to promise 40% monthly returns. The platform also claimed fictitious returns on its website amounting to 1% daily, or approximately 3,700% on an annualized basis.
The agency labeled these claims as “fraudulent,” asserting that the company did not utilize investor funds for trading with its Trading Bot. “Instead, they diverted investors’ funds for their own benefit, as well as for the benefit of their associates, by transferring these funds to digital wallet addresses under their control.”
Transactions Conducted via Dark Web
The investigations indicated that BitConnect was involved in a “complex web of transactions,” the majority of which were executed through the Dark Web.
The company concealed the transactions carried out across numerous crypto wallets, the Directorate noted.
The agency tracked multiple wallets during the investigation to locate the premises where the digital devices containing cryptocurrencies were stored.
Significantly, several foreign nationals also invested in BitConnect. The Indian Enforcement Directorate is pursuing the main accused in the case within the U.S., the report mentioned.
The article Indian Authorities Seize $190M Worth Crypto Linked to BitConnect Ponzi Scheme first appeared on Cryptonews.
