Indian Court Imposes Life Imprisonment for 14 in Bitcoins Blackmailing and Abduction Scandal
In a landmark decision, the Ahmedabad City Sessions Court has convicted 14 individuals, including a former BJP MLA and senior Gujarat police officers, in the 2018 Bitcoin extortion case involving Shailesh Bhatt, a builder and Bitcoin trader from Surat.
The case began in 2018 when Bhatt was kidnapped. He reported that someone posing as an agent from the Central Bureau of Investigation (CBI) tricked him into meeting. The investigation revealed that Bhatt had previously stolen ₹150 crore worth of Bitcoin from a Surat man named Dhawal Mawani.
The CBI took up the lead investigator's case, looking into allegations of extortion, fraudulent conduct, and potential corruption involving the former BJP MLA Nalin Kotadiya and senior police officers in Gujarat. A real CBI Inspector, Sunil Nair, was later involved, having asked Bhatt for a bribe and threatened to start a false probe if he failed to pay.
The trial took place at the ACB Special Court of the City Civil and the Sessions Court in Ahmedabad. The state brought in 172 witnesses against the accused, while the defense could only call one witness. However, 92 witnesses in the case were deemed hostile by the court.
The perpetrators, including Kotadiya, planned to steal from Bhatt after discovering his previous theft. They extorted 200 Bitcoins, worth approximately ₹12 crore at the time, and demanded a ransom of ₹32 crore. A non-bailable warrant was issued for Kotadiya's arrest after he went into hiding.
The court found the evidence and reasons sufficient to convict the accused. The convicted individuals were sentenced to life imprisonment under relevant sections of the Indian Penal Code and the Prevention of Corruption Act.
This conviction marks a significant step in combating crypto-related crimes, specifically extortion and kidnapping cases, not just in India but globally. In fact, there has been a surge in such crimes recently. Just this year, Spanish police arrested 3 British citizens for kidnapping a UK cryptocurrency trader in Marbella and demanding a £25,000 ransom.
The case has gained attention due to its complex nature and high-profile individuals involved. An article titled "How Social Engineering Fooled a Millionaire Out of $1.2M in Crypto" sheds light on the tactics used in such cases, highlighting the need for increased awareness and vigilance in the digital currency market.
As the world continues to embrace digital currencies, it is crucial to ensure the safety and security of transactions. This conviction serves as a reminder of the potential risks and the importance of trust and transparency in the digital economy.
