The Indian authorities, executive officer, seized cryptocurrency worth Rs. 1,646 crores (approximately $189 million) related to cryptocurrency investment fraud.
The funds in some of the digital assets were linked to the BitConnect Crypto scam, authorities said. The platform has scam many investors and seduced them with attractive securities investment opportunities. In addition to the funding, the department also seized physical cash, SUVs and several digital devices discovered during searches at different locations from February 11th to 15th.
In a statement provided by the Executive Office, the agency said that the CID Crime Police Station in Surat had investigated in line with the FIRS where it was registered, and in line with the provisions of the Anti-Money Laundering Act (PMLA).
Indian authorities arrest suspects related to BitConnect
According to Indian authorities, the suspect carried out activities from November 2016 to January 2018, raising funds from Indian and overseas investors for investment purposes. A police statement revealed that the founder of the illegal organisation BitConnect Investment Platform will pay a network of promoters from around the world to introduce people to the platform.
In return for recruiting investors, promoters are given specific corresponding committees. Investors were induced to deposit funds, either cash or other digital assets, into a lending platform represented by BitConnect. The platform told investors that, among other kings, it would use volatility software trading bots that it claimed would help investors generate returns.
Indian authorities also said that the BitConnect Investment platform posted fake returns on the platform, informing investors that it could increase yields of 1% every day, or yields of 3700% per year. The agency said the accused were well aware of these and still recruited people and invested their hard-earned funds into the platform. Indian authorities claimed there were no trading bots on the platform, but they siphoned up investors’ funds, controlled them and moved them to digital wallets.
Survey masks digital wallet trails
According to Indian authorities, criminals have used the funds to divert that fund to the purchase of gorgeous items and still have some. The agency said the investigation on the wallet used to operate found several wallets. He said the investigation was about trying to determine the origins and destinations of the funds.
The agency emphasizes that most of the traced transactions are connected to the dark web, and criminals are tactically trying to make it untrackable. However, as part of its ground information and tracking expertise, it was able to detect digital wallets containing digital assets and seize them from criminals. Previous investigations related to the incident allowed the authorities to seize property worth Rs 489 from the offender.
According to some sources, the platform’s investors were citizens of countries around the world. Indian authorities are investigating, but the perpetrators have also been tested in the US by federal authorities. More than $17 million in compensation will be returned to roughly 800 scheme victims in 40 countries around the world, according to a ruling in U.S. District Court in San Diego.
The platform creator, Satish Kumbhani, was indicted in 2022 and was charged with conspiracy to commit wire fraud by US promoter Glenn Arcaro. This scheme highlights the need to be monitored in the crypto sector. Unlike traditional financial industries where companies can make an effort to recover stolen funds, it is difficult to recover stolen funds in the crypto industry.
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