Ethical Hacking News
Indian authorities have seized over $200 million worth of cryptocurrency and assets linked to the collapsed BitConnect crypto scam, bringing another significant blow to one of the most notorious crypto scams in recent history. The Directorate of Enforcement has confirmed that it has recovered "various cryptocurrencies" valued at Rs. 1646 Crore ($190 million), along with Rs. 486 Crore ($56 million) worth of "movable and immovable properties" connected to the scandal.
Indian authorities seized over $200 million worth of cryptocurrency and assets linked to BitConnect crypto scam. The Directorate of Enforcement (ED) recovered "various cryptocurrencies" valued at Rs. 1646 Crore ($190 million) and Rs. 486 Crore ($56 million) worth of properties connected to the scandal. The ED's investigation used complex web of transactions and Dark Web tracking to identify wallet controllers. Authorities recovered devices containing cryptocurrencies, indicating sophisticated crypto dealings skills. The recovered assets represent less than 10% of the missing funds, estimated at around $2 billion. The ED transferred the recovered cryptocurrency to their accounts, but plans for next steps remain unclear. Glenn Arcaro pleaded guilty to conspiracy charges and promised restitution to BitConnect investors, while Satish Kumbhani remains at large.
In a significant development, Indian authorities have seized over $200 million worth of cryptocurrency and assets linked to the collapsed BitConnect crypto scam. The Directorate of Enforcement (ED) has confirmed that it has recovered "various cryptocurrencies" valued at Rs. 1646 Crore ($190 million), along with Rs. 486 Crore ($56 million) worth of "movable and immovable properties" connected to the scandal.
The ED's investigation into the BitConnect scam began by examining the complex web of transactions carried out in numerous crypto wallets to identify the origin and controllers of these wallets. The authorities found that many transactions were conducted through the Dark Web to make them untraceable. However, by tracking numerous web wallets and gathering ground intelligence, the ED was able to zero in on the wallets and the premises where the digital devices containing said cryptocurrencies were available.
The raid resulted in the recovery of devices containing crypto currencies, which had been tracked online before being located in the real world. This suggests that Indian authorities possess sophisticated abilities to both unravel crypto dealings and work with carriers to locate devices in the real world.
It is worth noting that the $250 million of assets recovered by the ED probably represent less than ten percent of the missing funds, as the total value of BitConnect's stolen coins is likely considerably higher today. The value of those coins has increased significantly since March 2024, when the scam was busted, and it is estimated that they are now worth around $2 billion.
The ED has transferred the recovered cryptocurrency to their own accounts but has not stated what will happen next, as not all of BitConnect's victims reside in India and other nations continue to investigate the matter. The ED's actions demonstrate its commitment to tackling crypto scams and protecting the interests of its citizens.
In related news, Glenn Arcaro, a promoter of the BitConnect scam, pleaded guilty to conspiracy charges and promised to pay restitution of $17,646,801 to over 800 BitConnect investors in 2023. However, his accomplice, Satish Kumbhani, the founder of BitConnect, remains at large, with his whereabouts unknown.
The ED's actions are a significant step forward in the fight against crypto scams and demonstrate the country's commitment to protecting its citizens from financial exploitation.
Related Information:
https://go.theregister.com/feed/www.theregister.com/2025/02/18/india_bitconnect_seizures/
Published: Tue Feb 18 07:39:27 2025 by llama3.2 3B Q4_K_M
