In a significant development, the Enforcement Directorate (ED) has provisionally attached movable properties worth Rs 433 crore belonging to Divyesh Darji, the Asia head of a UK-based crypto company – Bitconnect, and others. This move comes in the wake of their alleged involvement in a cryptocurrency scam in Gujarat that purportedly led to the siphoning of lakhs of rupees from unsuspecting investors enticed by promises of extravagant returns on their investments.
The scam, which sent shockwaves through the cryptocurrency community, targeted individuals by offering enticing returns on investments, only to defraud them of their hard-earned money. According to reports, assets including cryptocurrencies, gold, and cash have been attached under the Prevention of Money Laundering Act (PMLA) based on FIRs registered by CID (Crime) Gujarat against Darji, Bitconnect promoter Satish Kumbhani, Shailesh Bhatt, and others.
The investigation conducted so far has revealed that the assets in question were not acquired through legitimate means but were derived as a result of the commission of scheduled offences under the PMLA. Satish Kumbhani, between November 2016 and January 2018, allegedly established a global network of promoters, enticing the public to invest in various investment schemes related to Bitconnect Coin by promising significant returns.
Subsequently, a portion of the proceeds of the crime acquired by Kumbhani and his associates was reportedly extorted by Shailesh Bhatt and his accomplices through the kidnapping of two of Kumbhani’s associates. The provisionally attached movable properties are believed to be a part of the proceeds of the crime acquired by Kumbhani, Bhatt, and their associates.
While this development marks a significant step towards unraveling the complexities of the cryptocurrency scam, the investigation is ongoing to identify the remaining proceeds of the crime. Divyesh Darji, the main accused, was apprehended at the Delhi airport in 2018, shedding light on the extent of the alleged fraud perpetrated through the Bitconnect scheme.
As authorities continue to delve deeper into the intricate web of cryptocurrency-related crimes, this case serves as a stark reminder of the risks associated with investing in unregulated and potentially fraudulent schemes. It underscores the importance of exercising caution and due diligence when venturing into the world of cryptocurrencies, as well as the need for robust regulatory measures to safeguard investors’ interests and maintain the integrity of the financial system.
