Indian authorities have seized cryptocurrency worth approximately $190 million in connection with the fraudulent BitConnect scheme, according to local publication Indian Express.
Raids conducted on February 11 and 15 also resulted in the confiscation of about $15,500 in rupees, a car, and electronics.
Law enforcement officials analyzed a “complex network of transactions” involving numerous crypto wallets. Some operations were conducted on the darknet.
During the investigation, using ground intelligence data, specialists were able to locate premises where devices with access to digital assets were stored.
BitConnect operated from 2016 to 2018, offering a 40% monthly or 1% daily return allegedly through a trading bot’s deals.
In January 2018, investors filed a class-action lawsuit against the firm, accusing it of running a Ponzi scheme. Plaintiffs claimed that BitConnect did not engage in trading and that bonuses were paid from new investors’ funds.
The collapse of the platform resulted in $2.4 billion in damages, affecting approximately 4,000 victims from 95 countries.
In August 2024, Indian law enforcement arrested a local resident on suspicion of kidnapping two BitConnect employees and extorting $125 million in cryptocurrencies. The detainee claimed he was attempting to recover his investment.
In January 2025, in England, seven gang members were convicted for kidnapping a crypto investor for extortion purposes.