India Seizes $190M in Digital Assets Linked to BitConnect Ponzi Scheme
Indian authorities have seized nearly $190 million in digital assets linked to the BitConnect Ponzi scheme, following an investigation into suspected fraud. The Enforcement Directorate (ED) in Ahmedabad conducted raids, confiscating cryptocurrency worth Rs 1,646 crore, along with other assets.
BitConnect, which operated from November 2016 to January 2018, promised high returns through a 'volatility software trading bot'. However, it is alleged to have defrauded approximately 4,000 investors in 95 countries of around $2.4 billion. Some desperate investors resorted to extreme measures like abductions due to significant losses from BitConnect Coin (BCC) investments.
The ED, along with international authorities including U.S. federal agents, is actively investigating the case. During raids, they also seized over $15,000 in cash, an SUV, and various electronic devices. Funds were diverted into digital wallets managed by BitConnect's organizers, with fabricated performance figures displayed on the platform's website.
The collapse of BitConnect highlights the urgent need for regulatory reform and a shift in investor behavior towards more cautious approaches. The confiscated assets, worth nearly $190 million, were seized under the Prevention of Money Laundering Act (PMLA). The investigation into BitConnect's operations continues.
