New Delhi – In what is being hailed as a landmark operation, the Enforcement Directorate (ED) has seized cryptocurrency assets valued at Rs 1,646 crore in a single day from premises in Gujarat. This record-breaking action is part of an ongoing probe into a massive cryptocurrency fraud linked to the notorious BitConnect scam, which allegedly defrauded investors out of nearly $2.4 billion.
The assets were recovered from digital devices during targeted searches at locations associated with accused Satish Kumbhani. Hailing from Gujarat, Kumbhani is accused of orchestrating a global Ponzi scheme between 2016 and 2018 through his U.S.-based firm, BitConnect. The scam promised extraordinarily high returns—reportedly 40% per month—using a so-called “volatility software trading bot” and displayed false performance figures to lure in investors.
The ED’s investigation, conducted under the Prevention of Money Laundering Act (PMLA), also involves charges under multiple sections of the Indian Penal Code and other regulatory laws. In addition to the crypto seizure, assets worth Rs 535 crore have been attached in connection with the probe.
According to an ED official, the investigation was able to trace a large number of transactions conducted via the dark web. By meticulously tracking web wallets, IP addresses, and gathering on-ground intelligence, the agency pinpointed the locations of digital devices holding the illicit assets.
The BitConnect case first made headlines in India when investor Ashwin Limbasiya reported a fraud involving Rs 1.14 crore in 2018. While some of Kumbhani’s associates were arrested soon after, Kumbhani himself was taken into custody in June 2019 and was later questioned by the FBI before being released on bail in 2020.
This historic seizure by the ED not only represents the largest amount recovered by any Indian investigating agency in a single day but also sends a strong message to those involved in digital asset fraud. As authorities continue their probe, the focus remains on unearthing the full scale of the fraud and ensuring that such schemes do not undermine investor confidence in the rapidly evolving crypto market.
Investors and market watchers alike are closely monitoring this case, which underscores the urgent need for robust regulatory oversight in the cryptocurrency space.
