$3 Million Worth Of Properties Confiscated By Indian Authorities From BitConnect Scammers
India’s major media outlet, the Times of India, has reported that CID has confiscated worth Rs 38 Crore ($5.5 million) of a total of Rs 22,000 crore bitcoin scam. The properties seized are about Rs 18 crore and 280 bitcoins worth Rs 19.60 crore ($2.85 million).
The CID officials also arrested Rakesh Savani, Asian region promoter of BitConnect this Saturday and are to be held by the police until July 25th. Police officials said the trio, Harik Zadaphiya, Kalpesh Valji Lakhani and Rakesh Savani, had launched a website to promote Eros Coin from Nestcode Infotech office and offered to pay 45% bonus in ICO to attract investors. Incidentally, Eros Coin cryptocurrency scam is seventh to be exposed in the past some months in the city.
The ICO price was just at 20 cents, so the promised return was at least 300,000% of the initial investment. However, the price of the crypto dropped as soon as the s US regulators warned citizens that the project might be a Ponzi scheme. Savani played an important role in luring investors from their Varachha office.
The arrest and seizure might not come as too much of a surprise to anyone as the head of the Ponzi scheme were arrested over a year ago. Divyesh Darji, who was India head of BitConnect, was arrested after he arrived in the national capital from Dubai.
The alleged scam came to light after Surat-based builder Shailesh Bhatt claimed that some policemen from Amreli district grabbed him and his associate and forced cryptocurrency or Bitcoins worth Rs 9 crore from them. In an official statement, CID said:
“Apart from seizing two properties worth Rs 15 crore and 3.23 crore belonging to the accused, the CID has also seized 280 Bitcoins. The price of one Bitcoin is approximately Rs 7 lakh, making the seizure of Bitcoins worth Rs 19.60 crore.”