Indian Court Jails 14 for Kidnapping Businessman in Bitcoin Plot

TLDR

• Indian court sentences 14 people including ex-MLA and 11 police officers.
• Victim was kidnapped and forced to transfer Bitcoin worth thousands of dollars.
• Former Amreli SP and BJP leader found guilty of conspiracy and corruption.
• 173 witnesses testified during the trial led by special public prosecutor.
• Gold seized from a convicted officer will be handed to the Mumbai Mint.

An Indian anti-corruption court sentenced 14 people, including 11 police officers and a former MLA, to life imprisonment. The group kidnapped a businessman in 2018 and extorted Bitcoin worth thousands of dollars. The Ahmedabad court convicted them of kidnapping, criminal conspiracy, extortion, and abuse of power.

Court Finds Politician and Police Guilty

Special Judge B.B. Jadav pronounced the verdict against ex-BJP MLA Nalin Kotadiya and former SP Jagdish Patel on Friday. The judgment confirmed that they led the Bitcoin extortion conspiracy targeting Surat businessman Shailesh Bhatt. The court also held the 11 police officers guilty under the Prevention of Corruption Act.

Kotadiya and the officers allegedly learned Bhatt had recovered Bitcoin after the BitConnect collapse. They plotted to seize his assets and cash using force. The court found they illegally detained him and forced him to part with Bitcoin.

Special public prosecutor Amit Patel said, “The officers used state power for personal gain and violated public trust for Bitcoin.” During the extensive trial, the prosecution produced 173 witnesses. The evidence revealed how senior officers misused their ranks to extort cryptocurrency.

Bitcoin Extortion Orchestrated Through Kidnapping

The case involved the abduction of Bhatt on February 11, 2018, by Amreli crime branch inspector Anant Patel. The team detained Bhatt at Keshav Farm near Gandhinagar and used violence to force information. Bhatt was made to admit holding 752 Bitcoin, with 176 stored with an associate.

Bhatt claimed the gang forced him to sell Bitcoin worth about $150,000 and give up $3.6 million in cash. He filed a complaint with the Union Home Ministry after escaping, which led to the arrests. Authorities later seized gold from SP Patel, now ordered transferred to the Master of Mint, Mumbai.

Bhatt recovered his Bitcoin investment from BitConnect developer Dhaval Mavani before the gang intervened. BitConnect, a $900 million platform, collapsed amid fraud allegations. The gang saw Bhatt’s recovered Bitcoin as an opportunity for extortion.

National and Global Crypto Crimes Continue

This case highlights how Bitcoin crimes now involve both local gangs and international networks. India continues to report rising cases of crypto-related frauds involving high-ranking officials. The court’s action sets a precedent for legal consequences in such crimes.

In a separate case last week, Thai police arrested a South Korean man for laundering crypto into gold worth $50 million. Bitcoin’s high value often attracts criminals, making law enforcement more active in crypto crimes. Courts globally are increasing crackdowns on Bitcoin-related extortion and scams.

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