TLDR
- Fourteen men sentenced to life in India for 2018 crypto kidnap and extortion.
- Convicts include 11 police officers and ex-MLA Nalin Kotadiya.
- Victim Shailesh Bhatt was forced to sell 34 BTC worth $150,000 under threats.
- The court cited corruption law for officers abusing power during the abduction.
An anti-corruption court in India has sentenced 14 men, including 11 police officers and a former lawmaker, to life imprisonment for the 2018 kidnapping and extortion of a Surat businessman targeted for his cryptocurrency holdings.
Court Sentences Police Officers and Ex-MLA
An anti-corruption court in Ahmedabad has sentenced 14 men to life imprisonment for kidnapping and extortion linked to cryptocurrency. The case stems from the abduction of businessman Shailesh Bhatt in February 2018.
Those convicted include 11 police officers and former Gujarat lawmaker Nalin Kotadiya. Special Judge B.B. Jadav delivered the verdict, finding them guilty under kidnapping, extortion, criminal conspiracy, and corruption provisions.
Among the officers sentenced was Jagdish Patel, former superintendent of police in Amreli district. The court ruled that the group misused public office to extort funds from Bhatt after learning he had recovered part of his lost investment in BitConnect.
Kidnap Plot Targeted Bitcoin Holdings
Bhatt was lured to a fuel station by men posing as investigators from India’s Central Bureau of Investigation. He was abducted and taken to a farmhouse near Gandhinagar.
At gunpoint, he was pressured into admitting he had received 752 Bitcoin from BitConnect developer Dhaval Mavani. The kidnappers claimed he stored 176 BTC with an associate, while the rest had been liquidated.
The kidnappers initially demanded 176 Bitcoin and ₹32 crore in cash, then valued at over $3.6 million. Negotiations led to Bhatt selling 34 Bitcoin, with proceeds worth $150,000 transferred to the abductors. A cash handover later failed when the courier suspected a trap.
Trial Saw Hundreds of Witnesses
The prosecution presented testimony from 172 witnesses, including digital forensics experts and bank officials who tracked the crypto transfers. Some constables involved in the plot turned approvers.
However, 92 witnesses later retracted or altered statements during the trial. Judge Jadav issued perjury notices to 25 of them, citing concerns about pressure or intimidation.
The verdict also ordered confiscation of gold ornaments recovered from former police superintendent Patel, which will be transferred to the Master of Mint in Mumbai.
Role of Ex-Lawmaker and Wider Fallout
Nalin Kotadiya, who represented the Dhari constituency from 2012 to 2017, was accused of helping orchestrate the abduction. He evaded arrest for several months before being captured in September 2018. The court concluded that he and senior officers plotted to seize crypto assets from Bhatt through illegal detention.
Bhatt himself is currently facing criminal proceedings. Authorities accuse him of kidnapping two BitConnect promoters and extorting over 2,000 Bitcoin, along with Litecoin and cash. He was arrested in August 2024 by India’s Enforcement Directorate on charges including money laundering. His separate trial continues.
Long-Running Case Concludes With Sentencing
The sentencing closes a high-profile case that drew national attention to corruption within law enforcement and the growing role of crypto in crime. The ruling emphasized that public officials involved in the abduction had also violated the Prevention of Corruption Act.
The case, which began with the recovery of funds from the failed $900 million BitConnect scheme, ended with one of the harshest punishments handed down in a crypto-related crime in India.
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