The Directorate of the Application of the Act of India (ED) has made a breakthrough in the case of BitConnect cryptocurrency fraud, striking for $ 190 million in cryptographic assets. The repression comes from years after BitConnect, a Ponzi program that started in 2016, has frauds investors from around the world, leading to the collapse of its $ 521 token at only $ 1.
ED of India seized $ 190 million in crypto
On February 15, the urgency in Ahmedabad published a declaration confirming the seizure of digital assets About Rs 1,646 crores ($ 190 million). This measure was taken under the law on the prevention of money laundering (PMLA) following information reports (FIR) submitted by the CID Crime police station in Surat.
In addition to the cryptocurrency, the authorities seized $ 15,582 in cash, a luxury SUV and several digital devices during the raids carried out in Gujarat.
ED has discovered that BitConnect operators had created a network of transactions using several cryptographic wallets. However, thanks to advanced monitoring techniques and information collection, the investigators identified key portfolios and their controllers, which led to the recent repression.
Context of BitConnect fraud
BitConnect, which worked as an unregistered entity, has established a large network of promoters who have won commissions by recruiting new investors. The founder of the platform, satisfied Kumbhani, was charged by the United States Ministry of Justice in February 2022 for having controlled fraud.
Under his direction, BitConnect managed to perceive $ 2.4 billion before closing in 2018, after orders for sale and desire for American regulators.
With the current survey of emergency and the recent seizure of assets, the authorities increase the efforts to translate the culprits into justice.