Bitconnect, one of the most notorious scams in crypto history, has surfaced with new details as Indian authorities seized nearly $190 million in related assets. This is the largest asset seizure in the country's history, marking a new milestone in an investigation that began in 2018.

The Largest Asset Seizure in Indian History

During two raids on February 11 and 15, 2025, the Enforcement Directorate (ED) Ahmedabad seized:

  • $15,582 in cash,

  • An SUV,

  • Many electronic devices related to the case.

The investigation was initiated after Surat police received numerous complaints from victims, accusing Bitconnect of fraud.

Bitconnect – The “Legend” of Ponzi Scams

Launched in 2016, it self-promoted as a crypto lending platform using proprietary “trading bots” and “volatility software.” The project promised an average daily compounded interest of 1%, equivalent to about 3,700% annually.

However, this Ponzi scheme collapsed in 2018, stealing $2.4 billion from over 4,000 people in 95 countries, becoming a stain on the history of the crypto industry.

Satish Kumbhani, the mastermind of Bitconnect, was indicted by the U.S. Department of Justice in February 2022 on charges:

  • Building a global promotional network,

  • Paying commissions to partners to spread the scam,

  • Scamming over 4,000 investors from 95 countries.

Shocking Detail: Kidnapping Victim Demands Ransom

A surprising detail occurred in August 2024 when Shailesh Babulal Bhatt, a victim of Bitconnect, had:

  • Colluding with accomplices to kidnap two employees of Kumbhani,

  • Demanding a ransom of up to 2.091 million, 11,000, and $1.7 million in cash for their release,

  • Arrogantly declaring that this action was to 'recover the lost investment.'

FBI Joins the Fight Against Crypto Fraud

While India is investigating and seizing Bitconnect's assets, the FBI has also launched 'Operation Level Up' to help:

  • Preventing crypto scams worth $285 million from January 2024 to January 2025.

  • Arresting and prosecuting individuals involved in these potential scams.

Additionally, the U.S. Department of Justice successfully auctioned off $56 million in Bitconnect cryptocurrency at the end of 2021 to recover assets for the victims.

General Assessment

The Bitconnect Ponzi scheme is not only a stain on the history of the crypto industry but has also left severe consequences for thousands of investors worldwide. The investigations by India and the FBI demonstrate a strong determination to bring the fraudsters to light and recover assets for the victims.

In the context of the growing crypto landscape, investors need to be cautious of unrealistic profit promises and conduct thorough research before investing.

Risk Warning

Crypto is a high-risk investment field and is not suitable for everyone. Before making any decisions, you should conduct thorough research and consider your personal financial situation.