The Directorate of Enforcement (ED) in Ahmedabad has dealt a big blow to certainly one of historical past’s largest cryptocurrency frauds, recovering Rs. 1,646 crore (approx. $219 million) in illicit crypto belongings linked to the BitConnect Ponzi scheme throughout coordinated raids on 11 and 15 February.
The operation—a part of a years-long probe into the multi-billion-rupee rip-off—additionally seized Rs. 13.5 lakh in money, a luxurious Lexus sedan, and significant digital proof, marking a watershed second in India’s crackdown on monetary cybercrime.
The BitConnect scandal, which duped international traders between 2016 and 2018, promised month-to-month returns of as much as 40% by way of a fictitious “volatility software program buying and selling bot”.
Indian victims alone poured 1000’s of crores into the scheme earlier than it collapsed, with promoters falsely claiming annualized income of three,700% whereas funneling deposits into private wallets through the Darkish Net.
Investigators confirmed the buying and selling algorithm by no means existed; as an alternative, operators recycled investor funds to maintain payouts to earlier members—a trademark of Ponzi fraud.
Unraveling this net required ED’s cyber-finance unit to hint transactions throughout darknet platforms and anonymized wallets.
“By analyzing blockchain patterns and collaborating with international companies, we recognized wallets managed by BitConnect’s internal circle,” an ED supply acknowledged.
The breakthrough got here after months of decrypting units and leveraging floor intelligence to pinpoint bodily storage areas for digital belongings.
This seizure builds on prior actions, together with the 2023 attachment of Rs. 489 crore in properties tied to Indian promoters.
With BitConnect’s founder below parallel investigation within the U.S., the ED emphasizes cross-border cooperation to reclaim losses for victims worldwide.
The dimensions of recovered belongings underscores the rip-off’s sophistication. “This wasn’t simply greed—it was a meticulously engineered deception exploiting crypto’s anonymity,” famous a monetary crimes analyst.
Authorities urge affected traders to return ahead as forensic audits of seized units proceed.
As regulatory frameworks battle to maintain tempo with crypto improvements, the BitConnect case highlights each the vulnerabilities of digital finance and legislation enforcement’s evolving capability to fight web-enabled fraud.
With over $2 billion allegedly scammed globally, this seizure units a precedent for worldwide asset restoration within the blockchain age.
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