ED Seizes Properties Worth Rs 47.70 Crore in Bitconnect Coin Case
The Enforcement Directorate (ED) has taken action in the Bitconnect Coin cryptocurrency case by seizing properties valued at Rs 47.70 crore. These properties, considered Proceeds of Crime, were attached under the Prevention of Money-Laundering Act (PMLA), 2002.
Background of the Case
The investigation began following reports by Surat Police against individuals including Divyesh Darji, Satish Kumbhani, and Shailesh Bhatt. From November 2016 to January 2018, Satish Kumbhani, the promoter of Bitconnect Coin, allegedly created a global network to attract investments with promises of high returns.
Fraudulent Activities Uncovered
Investigations revealed that Kumbhani and his associates raised significant investments through fraudulent schemes, deceiving investors. Additionally, Shailesh Bhatt and his accomplices extorted part of these funds by kidnapping two of Kumbhani’s associates.
Legal Actions Taken
The ED found that the properties were not acquired through legitimate income but were the result of criminal activities. Previously, the ED had attached properties worth Rs 488 crore in this case. Shailesh Bhatt was arrested for money laundering on August 13, and a prosecution complaint has been filed against him in the Special Court (PMLA), Ahmedabad. Bhatt remains in judicial custody.
Doubts Revealed
ED -: ED stands for Enforcement Directorate. It is a government agency in India that investigates financial crimes like money laundering and fraud.
Bitconnect Coin -: Bitconnect Coin was a type of cryptocurrency. It was involved in a scam where people were tricked into investing money with false promises of high returns.
Rs 47.70 Crore -: Rs 47.70 Crore is a large amount of money in Indian currency, equivalent to 477 million rupees.
Proceeds of Crime -: Proceeds of Crime refers to money or property gained through illegal activities. In this case, it means the properties were bought using money from the scam.
Prevention of Money-Laundering Act -: The Prevention of Money-Laundering Act is a law in India that helps stop money laundering. Money laundering is when people try to hide money made from illegal activities.
Surat Police -: Surat Police is the police department in Surat, a city in the Indian state of Gujarat. They help maintain law and order in the city.
Satish Kumbhani -: Satish Kumbhani is a person involved in the Bitconnect Coin scam. He and his associates tricked people into investing money in their fraudulent schemes.
Shailesh Bhatt -: Shailesh Bhatt is another person involved in the case. He extorted, or illegally took, some of the money from the scam and is now in police custody.
