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- Indian authorities seized nearly $190M in crypto linked to the BitConnect Ponzi scheme.
- Investigators traced BitConnect assets to Gujarat, recovering funds and tightening crypto regulations amid ongoing scam crackdowns.
Recently, Indian authorities seized roughly $190 million in assets reportedly tied to the BitConnect Ponzi scheme. The global scam, which ensnared thousands of investors across the world, is one of the most damaging crypto cases in recent years. But how could a once-popular program turn into such a huge fraud? Let’s probe further.
BREAKING :
🇮🇳 INDIA HAVE SEIZED $190 MILLION
IN CRYPTO, CASH AND LUXURY CARS
LINKED TO BITCONNECT SCAM. pic.twitter.com/LcgQltPnZy— Ash Crypto (@Ashcryptoreal) February 16, 2025
Promises of High Returns That Ended in Disaster
Originally showing up in 2016, BitConnect first attracted investors with their automated trading algorithm loan program offering rich rewards. Promoters of BitConnect at the time presented the platform as one whereby investors could quickly generate passive income. Like the “earn money while you sleep” promise we frequently hear in dubious commercials.
Benevolent claims belied a traditional pyramid scam, nevertheless. Old investors received returns paid for by funds from new investors. And, as many have hypothesized, the structure was shortlived.
After authorities in Texas and North Carolina filed cease and desist orders in January 2018, BitConnect closed its lending program. BitConnect Coin’s (BCC) price fell within hours. Investors were left in a condition of great losses and ambiguity.
Inside India’s $190M Crypto Seizure Operation
Authorities all around have started tracking the money coming from this operation since the catastrophe. Founded BitConnect, Satish Kumbhani is a worldwide exile having been charged in the US with fraud, money laundering, and running an illicit money transfer company. He might spend up to seventy years in US jail.
In India, meantime, the probe turned up a series of dubious transactions heading to Gujarat. On February 11 and 15, 2025, the Enforcement Directorate (ED) raided numerous Ahmedabad sites and seized digital assets worth around $190 million. Apart from cryptocurrency, they also grabbed an SUV, cash totaling roughly $15,500, and electronics.
An official involved in the operation stated that they had found strong evidence indicating the assets came from investor funds channeled through various anonymous accounts.
Indian Traders Reconsider Amid New Tax Laws
The disclosures have elicited conflicting responses in the Indian bitcoin community. Many are happy that action is at last being done to target sector-specific criminality. Others, however, are cautious.
With India’s new tax rules starting earlier this month—penalties of up to 70% for undeclared crypto profits—traders are reevaluating their activities in the nation. Many others have even relocated their activities to South Korea, Hong Kong, and Singapore.
Since last year, India has been really increasing its initiatives to fight cyber crime. As we have reported in January 2025, the nation started emphasizing “pig butchering,” a fraud in which victims are enticed via apparently pleasant online contacts before being financially drained. Last year the program is said to have cost the nation more than $3.6 billion.
Additionally helping Indian authorities to fight the false network are Google and Meta. The cooperation helped to collect around ₹16 billion and free almost 575,000 victims from the grip of fraud.
