Indian authorities freeze assets in the BitConnect scam case: new arrests in accordance with the directive

GasGuzzler · 2026-01-31T15:10:21+00:00

Indian authorities are combating organized fraud, exemplified by the arrest of key figures in the BitConnect scheme, involving fraudulent investments, kidnapping, and extortion. Investigations revealed cryptocurrency-financed crime, leading to asset freezes worth billions and exposing the false promises of a so-called AI trading robot.

GasGuzzler

2026-01-31 15:10:21

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Indian enforcement agencies are proceeding according to strict legal guidelines in the fight against organized fraud. As part of a large-scale operation targeting the BitConnect network, two key individuals were detained – Nikunje Pravinbhai Bhatt and Sanjay Kotadia – for their alleged involvement in a massive scheme that included not only fraudulent investment plans but also crimes of kidnapping and extortion. The investigation uncovered a complex structure of criminal activity financed through cryptocurrencies.

Arrests related to fraud and robbery

The criminal syndicate operating BitConnect enforced fund transfers from victims through kidnappings and threats. The revealed loss amounted to over 2,254 Bitcoins and more than 11,000 Litecoins, which were converted into other forms – some into Ethereum (ETH) and tethered dollars (USDT). Additionally, half a million rupees in cash were involved. These funds were subsequently transferred through a network of digital wallets, complicating their tracking.

Frozen assets and monitoring of cash flows

Indian authorities immediately initiated measures to prevent further movement of funds. Bank accounts and cryptocurrency wallets worth approximately 190 million rupees, including physical shares and cash, were frozen. During the ongoing investigation, the total value of seized and frozen assets was estimated at a staggering 21.7 billion rupees – a figure that reflects the scale of the fraudulent scheme.

BitConnect: fake robot promising impossible profits

The core issue was that BitConnect aggressively promoted its allegedly autonomous AI trading robot, which was supposed to generate monthly returns of 40 percent – a return that is impossible to legitimately achieve under market conditions. This unrealistic promise became the primary bait to attract vulnerable investors into the scam network. Criminal proceedings are ongoing, with authorities striving to identify all participants in this organized scheme and to properly apply legal guidelines.

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