Indian authorities have confiscated approximately $190 million worth of cryptocurrency from an individual connected to the now-defunct BitConnect Ponzi scheme. The Directorate of Enforcement (ED), India’s financial crime investigation agency, carried out the seizure as part of an ongoing probe into fraudulent activities tied to the global scam. BitConnect, once one of the largest cryptocurrency lending platforms, collapsed in 2018, leaving investors worldwide with massive losses.
According to the ED, the seized funds were linked to Satish Kumbhani, the alleged mastermind behind BitConnect, and his associates. Investigators revealed that Kumbhani and his network defrauded thousands of investors by falsely promising high returns on crypto investments. The agency emphasized that the funds were laundered through various cryptocurrency exchanges before being traced and frozen. This latest action marks one of India’s largest crypto-related asset seizures to date.
BitConnect operated by encouraging users to lend Bitcoin in exchange for its native token, BCC, while guaranteeing daily returns through an automated trading bot. However, authorities later exposed the scheme as a classic Ponzi operation, where returns were paid from new investors’ funds rather than actual trading profits. The U.S. Department of Justice and other global regulators have also been investigating BitConnect’s fraudulent activities, with multiple arrests and legal actions taken against its key figures.
The ED has reaffirmed its commitment to cracking down on crypto-related financial crimes, especially those involving large-scale fraud and money laundering. This seizure underscores India’s increasing scrutiny of cryptocurrency transactions, aligning with global efforts to regulate digital assets and prevent illicit financial flows. Authorities continue to track funds linked to BitConnect and similar scams, signaling that enforcement agencies are taking a firm stance against crypto fraud.
