Key Takeaways:
- 14 people have been given life sentences by an Indian court in relation to a crypto kidnapping and extortion plot.
- Among the convicted were a former lawmaker in the ruling Bharatiya Janata Party (BJP) and 11 police officers.
- The victim was abducted and tortured to get him to transfer 34 Bitcoin in 2018.
Table of Contents
Crypto Kidnapping at its Best
In a ruling that highlights what can happen when crypto crime and official corruption meet, an Indian court sentenced 14 individuals to life in prison for a horrific crypto kidnapping. In what has been a sensational case since it happened in 2018, the victim, Surat businessman Shailesh Bhatt, was kidnapped by a group that included a former Bharatiya Janata Party legislator, Nalin Kotadiya, and 11 serving police officers.
The BitConnect-ion
The scheme was planned after the criminals learned of Bhatt’s recovery of a large amount of Bitcoin (BTC) that he lost during the collapse of the BitConnect Ponzi scheme. Posing as federal agents, the group kidnapped Bhatt at a gas station and held him at a farmhouse after he was beaten and tortured. In abusing their position of authority, the captors forced him to transfer 34 BTC, worth approximately $150,000 at the time, while also demanding 176 BTC ransom, and millions in cash.
Grounded for Life
The preceding trial was a massive undertaking to address systematic corruption. Prosecutors called 173 witnesses to testify, but an astonishing 92 took back their testimony later, for which the judge issued perjury notices for alleged interference with the witness testimony. Notwithstanding those obstacles, the trial court found all of the defendants guilty of kidnapping, extortion, and criminal conspiracy under the Prevention of Corruption Act of India.
Summing Up
This case and sentencing undoubtedly illustrate that crypto kidnapping and the misuse of power for theft of digital assets will be prosecuted to the full extent of the law. This case highlights the extreme risks crypto holders face once their holdings become known, as well as the frightening possibility of corruption in institutions created to serve the people.
Last Thought: This case serves as a shocking reminder that while crypto is all digital, the threats against it can be violently physical, and the difference between protector and predator can be as thin as one hazy line.
FAQs
What was the motivation for this kidnapping?
The suspects targeted the victim after knowing that he had recently recovered a significant amount of Bitcoin from the failed BitConnect investment scheme to steal the victim’s crypto assets.
Why is this case unique?
This is the first major case in which such a large group of police and a politician were convicted and sentenced to life for a crime solely related to stealing cryptocurrency.
What happens to the victim?
In a separate event, the victim in the crypto kidnapping case, Shailesh Bhatt, was arrested on charges of being the mastermind behind a separate crypto extortion racket in connection with BitConnect.
For more on India’s crypto crime stories, read: India’s NCB and Binance Smash ‘Ketamelon’ Darknet Syndicate in $1.2M Bust
