In a significant move against cryptocurrency fraud, Indian authorities have executed a major operation, resulting in the India Bitconnect Seizure of approximately $189 million in digital assets linked to the infamous Bitconnect investment scam. The Enforcement Directorate (ED) in Ahmedabad carried out this seizure on February 15, 2025, targeting assets tied to one of the largest Ponzi schemes in crypto history, as reported by multiple sources including Crypto News and Hindustan Times.
The India Bitconnect Seizure involved cryptocurrencies valued at ₹1,646 crore (approximately $189 million), alongside additional assets such as $16,300 in cash, a luxury SUV, and various electronic devices. This action was part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), following initial cases registered by Surat’s CID Crime Police Station. The ED’s efforts have traced a complex web of transactions, many of which were conducted on the dark web, uncovering digital wallets and devices holding the illicit funds.
Bitconnect, which operated globally from November 2016 to January 2018, promised investors exorbitant returns of up to 40% monthly through a supposed proprietary trading bot. However, the scheme, which amassed $2.4 billion from victims worldwide, including many in India, was exposed as a Ponzi operation, using new investor funds to pay returns to earlier participants. The India Bitconnect Seizure adds to previous ED actions, including a $56.5 million asset attachment, bringing the total value of seized assets in this case to over $245 million.
The investigation has also spotlighted Satish Kumbhani, Bitconnect’s founder, who was indicted in the U.S. in 2022 and remains a fugitive. Indian authorities have issued a lookout notice for Kumbhani, intensifying efforts to bring key figures to justice. The India Bitconnect Seizure demonstrates the government’s resolve to combat crypto-related fraud, reflecting a broader crackdown on illicit financial activities in the digital asset space.
Reactions on X have been a mix of approval and calls for further action, with users praising the seizure while urging attention to other crypto scams like WazirX and BitBNS. This operation could set a precedent for future enforcement actions, potentially enhancing investor trust and regulatory oversight in India’s burgeoning crypto market. https://x.com/Lutcheann