Indian authorities have seized cryptocurrency worth approximately $190 million (₹1,646 crore) linked to the infamous BitConnect Ponzi scheme, marking one of the largest crypto enforcement actions in the country. The Enforcement Directorate (ED) in Ahmedabad conducted raids on February 11 and 15, 2025, as part of an ongoing investigation into the global $2.4 billion fraud that affected over 4,000 investors across 95 countries.
Details of the Seizure
The confiscated assets include cryptocurrency stored in digital wallets, ₹13,50,500 (around $15,582) in cash, a sport utility vehicle (SUV), and electronic devices.
The ED traced a complex web of transactions involving dark web transfers and multiple crypto wallets to obscure the origins of funds. Despite these challenges, investigators successfully located and seized the assets.
The BitConnect Scheme
BitConnect operated between 2016 and 2018 as a high-yield investment program. It promised returns of up to 40% per month through a purported “volatility software trading bot.” However, it was revealed to be a Ponzi scheme where funds from new investors were used to pay earlier ones. The platform collapsed in January 2018 after raising $2.4 billion globally.
The scheme’s founder, Satish Kumbhani, established a global network of promoters who earned commissions for recruiting new investors. Kumbhani was indicted by the U.S. Department of Justice in February 2022 for wire fraud, money laundering, and other charges but remained a fugitive until recently being traced to Ahmedabad by Indian authorities.
Implications and Next Steps
The ED’s investigation is being conducted under the Prevention of Money Laundering Act (PMLA). Authorities are now preparing to restitute the proceeds of crime to victims worldwide, including foreign nationals who suffered losses. This case highlights the growing regulatory scrutiny over cryptocurrencies and serves as a cautionary tale for investors regarding schemes promising unrealistically high returns.