Michaela
An Indian anti-corruption court has sentenced 14 individuals to life imprisonment for a 2018 crypto kidnapping case in which Surat businessman Shailesh Bhatt was abducted and coerced into handing over cryptocurrency.
Key points:
- An Indian anti-corruption court sentenced 14 people, including 11 police officers and former legislator Nalin Kotadiya, to life in prison for the 2018 kidnapping and extortion of businessman Shailesh Bhatt over cryptocurrency.
- Bhatt was forced to transfer 34 Bitcoin and was later threatened with an additional 176 BTC and ₹32 crore in cash, though the larger ransom was never completed.
- The investigation also revealed Bhatt’s alleged involvement in a separate crypto extortion case, underscoring the complex nature of digital asset-related crimes.
According to The Times of India, the 14 convicted individuals include 11 current or former police officers and former legislator Nalin Kotadiya. Special Judge B.B. Jadav found them guilty of criminal conspiracy, kidnapping for ransom, unlawful detention, and assault, while one accused, Jatin Patel, was acquitted.
The 11 police officers, including Patel, were found guilty under the Prevention of Corruption Act for criminal misconduct by public servants, and the court imposed fines in addition to their life sentences.
In February 2018, Bhatt was tricked into visiting a gas station by individuals impersonating officers from India’s Central Bureau of Investigation. He was then abducted, taken to a farmhouse near Gandhinagar, where he was beaten and held at gunpoint while his captors demanded both cryptocurrency and cash.
Bhatt was compelled by his captors to sell 34 Bitcoin (BTC), valued at around $150,000 at the time, and transfer the proceeds to them. Subsequently, they demanded an additional 176 BTC along with ₹32 crore (approximately $3.6 million) in cash, but the courier assigned to deliver the money became suspicious and refused to complete the handover.
Although Bhatt was the victim in the kidnapping, his complaint to the Criminal Investigation Department (CID) prompted an investigation that uncovered his alleged involvement in a separate extortion scheme.
In August 2024, India’s Enforcement Directorate arrested Bhatt on charges that include kidnapping and money laundering. He is currently under investigation for his alleged role in another crypto kidnapping, in which he is accused of abducting two BitConnect promoters and extorting thousands of Bitcoin and Litecoin, along with more than ₹14 crore in cash.
Despite the case dating back several years, crypto kidnapping has become more prevalent recently, with analysts pointing to Bitcoin’s record highs as a factor increasing the risk for digital asset holders.
The verdict spotlights growing concerns over the intersection of traditional crime and emerging digital assets, emphasizing the challenges law enforcement faces in keeping pace with evolving financial technologies.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
