ED Seizes $190M in Cryptocurrency in BitConnect Ponzi Scheme Crackdown
The Enforcement Directorate (ED) in Ahmedabad has made a significant seizure in its investigation into the BitConnect crypto Ponzi scheme. The agency has confiscated cryptocurrency worth approximately $190 million (Rs 1,646 crore), along with other assets. The ED's action comes after raids where they also seized over $15,000 in cash, an SUV, and electronic devices. The crypto was linked to the BitConnect scheme, which lured investors with promises of high returns through a 'volatility software trading bot'. However, authorities allege that BitConnect founders fabricated performance figures, claiming an average daily return of 1%. The confiscated assets are part of an investigation into BitConnect under the Prevention of Money Laundering Act (PMLA). The persons suspected in connection with the seized crypto include Divyesh Darji, considered a key promoter, and other associates involved in the fraudulent scheme. BitConnect is alleged to have defrauded approximately 4,000 investors in 95 countries of around $2.4 billion. The scheme caused such staggering fund losses that investors resorted to extreme measures, including abductions. Funds were diverted into digital wallets managed by BitConnect's organizers. Regulators are now urged to establish clearer guidelines for digital asset platforms to prevent such crypto fraudulent schemes in the future. The ED's seizure of cryptocurrency and other assets is a significant step in the investigation into the BitConnect crypto Ponzi scheme. The confiscated funds, worth Rs 1,646 crore, are now secured as part of the ongoing probe. The case highlights the need for stricter regulations to protect investors in the digital asset space.
