Landmark Ruling in Crypto-Related Crime
In a historic judgment, an Indian anti-corruption court has sentenced 14 individuals, including 11 police officers and a former Bharatiya Janata Party (BJP) MLA, to life imprisonment for their involvement in a high-profile Bitcoin extortion and kidnapping case dating back to 2018.
This case, which shook the Indian crypto community, revolved around a conspiracy to seize over 750 Bitcoin from a Surat-based businessman, highlighting the dark side of cryptocurrency adoption in India.
What Happened in the Bitcoin Extortion Case?
According to reports, the victim, businessman Shailesh Bhatt, had previously invested in BitConnect, a $900 million crypto platform that later collapsed. After recovering a portion of his funds in Bitcoin from developer Dhaval Mavani, Bhatt became the target of a criminal plot.
On February 11, 2018, Bhatt was abducted and illegally detained at Keshav Farm near Gandhinagar by a team led by Amreli local crime branch inspector Anant Patel, allegedly under instructions from former BJP MLA Nalin Kotadiya and senior police officials.
Bhatt was beaten and coerced into revealing that he had received 752 Bitcoin and had stored 176 Bitcoin with his associate, Kirit Paladiya. The remaining cryptocurrency was reportedly sold for around $5 million.
Bitcoin Ransom and Forced Transfers
The kidnappers demanded that Bhatt transfer a portion of his Bitcoin holdings and $3.6 million in cash. When this deal fell through, they forced him to sell 34 Bitcoin from Paladiya’s wallet, resulting in an extortion of approximately $150,000.
Bhatt later lodged a complaint with the Union Home Ministry, triggering a large-scale probe that exposed corruption within the police force and resulted in 15 arrests.
The trial, led by Special Public Prosecutor Amit Patel, included 173 witnesses. Special Judge B.B. Jadav found all 14 guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault, along with violations under the Prevention of Corruption Act.
The court also ordered the confiscation of gold ornaments seized from the former Amreli SP Jagdish Patel, which will be transferred to the Master of Mint in Mumbai.
Crypto Crimes on the Rise
This ruling underscores the growing trend of crypto-related crimes in India and globally, as digital assets continue to gain adoption. Just last week, Thai authorities arrested a South Korean national linked to laundering over $50 million in cryptocurrency through gold purchases.
The life sentence for 14 accused, including law enforcement officials, marks one of the strictest punishments for crypto-related crime in India. This case highlights the urgent need for stronger crypto regulations and security measures to prevent similar incidents in the future.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.