India Seizes $190 Million in Assets Linked to Bitconnect Ponzi Scheme

Bitconnect, the “legendary” ponzi scam of 2018, has new details.

Indian authorities have seized nearly $190 million in cryptocurrency linked to the infamous Bitconnect Ponzi scheme in 2018. This is also the largest asset seizure in the country’s history.

On February 11 and 15, the Enforcement Directorate (ED) Ahmedabad conducted raids at multiple locations in Gujarat, seizing $15,582 in cash, an SUV, and other electronic devices.

The investigation was initiated after the ED received a series of complaints from the Surat police, where victims reported BitConnect’s crimes.

Bitconnect, launched in 2016, was promoted as a crypto lending platform with proprietary “trading bot” and “volatility software” technology. The project promised an average daily compound interest of 1%, equivalent to about 3,700% annually.

The scheme quickly collapsed in 2018 after stealing $2.4 billion from more than 4,000 people from 95 countries, becoming a “stain” in the history of the cryptocurrency industry.

Kumbhani, the leader of Bitconnect, was indicted by the US Department of Justice in February 2022, accused of building a global promotion network and paying commissions to partners to spread the scam. According to statistics, BitConnect defrauded more than 4,000 investors from 95 countries, appropriating about $2.4 billion.

The story does not stop with the investigation and asset seizure. A shocking incident occurred in August 2024. Shailesh Babulal Bhatt, one of Bitconnect’s victims, conspired with accomplices to kidnap two Kumbhani employees. Bhatt demanded a ransom of 2,091 Bitcoins, 11,000 Litecoins, and $1.7 million in cash for their release. Bhatt also arrogantly claimed that this action was to “recover the investment” he had lost.

While Indian authorities were investigating the scam, the FBI also conducted an operation called “Operation Level Up,” which helped prevent $285 million worth of potential crypto scams from January 2024 to January 2025.

The Bitconnect Ponzi scheme left serious consequences for thousands of investors around the world, and authorities continue to work to bring the perpetrators to light and recover assets for the victims. In addition, at the end of 2021, the US Department of Justice also successfully auctioned $56 million worth of BitConnect cryptocurrency.