Criminal Acts Cost India $3B in Bitcoin
India has seen losses worth well over $3B as a result of corruption involving local enforcement, tax pay evasion, kidnapping and more. According to reports, this situation saw itself take place during February of this year. Shailesh Bhatt voiced his own down-look on local police officers of Gujarat after he accused local law enforcement of kidnapping him in order to receive a sum of around 200 Bitcoin.
Currently, what is thought to have most likely happened is that Nalin Kotadiya, Shailesh Bhatt’s uncle and a previous governmental lawmaker is believed to orchestrated the entire kidnapping with the help of Kirit Paladiya. Despite this, Ashish Bhatia, the leading investigator on the case also pressed charges against Bhatt.
As of now, Paladiya is serving time in prison and his niece and Kotadiya have vanished from the public’s view. Bhatt was accused again by Kotadaya after posting a video and confessing innocence while stating that Bhatt has indeed put a grand scale scam into motion and several other political figures were involved in the scheme.
According to reports, Bhatt poured funds into BitConnect during the end of 2016 until the beginning of last year. The entire scheme has also reached the United States where six investors operating under the name of Crypto Watchdogs have also pressed charges against BitConnect, claiming that the company was involved in numerous fraudulent acts around the world. Apart from promising big-time returns for investors, the company would also allegedly lure investors into depositing their BTC and crypto to exchange them for BitConnect coins and earn heavy interest every month.
During the spike of BTC’s price last year, climbing from $1000 to almost $20000, reports have stated that Bhatt and several other investors from Gujarati had pumped over $3B Bitcoins into the company as Bhatia had stated. As the report displayed, Bitcoin and BitConnect saw much more interest directed towards them as a result of Modi’s order of demonetizing around 15T rupees as a means of denying and cutting down on tax evasion. As one accountant has stated, this contributed to around $650M USD being transferred to Surat and stored within investments including digital currencies.
Kiran Vaidya of U Cash in Canada stated that following the demonetization, the company has been observing India and the rise of Bitcoin following the financial crisis in Greece and with recent negative events in Venezuela, people could shift markets due to the very high volumes displayed. After cease and desist orders were handed over to BitConnect in Texas and North Carolina, the company took a real dip. Further action even saw India’s reserve bank place several fully restrictive bans on cryptocurrency dealings within the country.