Indian Crypto Platform BitConnect’s Head Arrested

Nishanth Shetty

August 20, 2018 10:53 am

Crypto Scam

Indian Crypto Platform BitConnect's Head Arrested | Coindelite News
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Bitconnect, a cryptocurrency platform which got shut in January 2018 for cheating its investors with a huge amount. According to the reports, BitConnect’s Head Divyesh Darji is caught by Indian Police at Delhi Airport. He was arrested while returning from Dubai.

Inspector P G Narwade of Criminal Investigation Department (CID-Crime) of Gujarat police told Darji was living in Dubai. He was issued with a look-out circular order. The police department was alerted by the Immigration Department when he was traveling from Dubai to Ahmedabad.

His company was introduced in February 2016 and got shut by January 2017. The crypto platform also issued a cryptocurrency called BitConnect coin. Bitconnect launched around 2.80 crore coins, where 1.8 crore coins were sold to investors.

An FIR was filed against Bitconnect promoters as they collected Bitcoins worth Rs 1.14 crore from one investor before escaping. The CID alleged that employees at BitConnect’s Surat office revealed that promoters collected “crores of rupees from thousands of investors.”

The scam came to light while Surat-based builder Shailesh Bhatt reported to police that He was Kidnapped. Mr.Bhatt revealed that some policemen kidnaped him and his business partner in Amreli district.

Bhatt was arrested for extorting cryptocurrency and cash worth over Rs 155 crore at gunpoint from two men who worked for Satish Kumbhani, one of the promoters of BitConnect.

Bhatt had also invested in BitConnect but lost money. Bhatt and his associates kidnaped Kumbhani’s former employees and forced them to transfer over 2,400 Bitcoins into Bhatt’s digital ‘wallet’ (account), the CID alleged.

When this information was spread, Kumbhani and other BitConnect promoters came under the CID’s eyes.

The CID described that in January 2018, Kumbhani and other promoters closed the exchange and absconded. Investors lost money as they could no longer use or trade their BCC tokens or coins.

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