Nalin Kotadiya Arrested For Extorting $1.3 Million Worth Of Bitcoin (BTC)
Nalin Kotadiya, a former BJP MLA, has been apprehended for a possible involvement in the abduction of Shailesh Bhatt. Kotadiya was first linked to this case during the interrogation of Kirit Paladiya earlier this year. The politician has since evaded arrest, but he was final nabbed by the Ahmedabad Crime Branch Police on Sunday September 9, 2018. As a result, many expect to see developments regarding the case where Kotadiya is accused of extorting Bitcoin worth Rs 9.95 crore.
After declining to appear for questioning, a local court issued a warrant against Kotadiya. As expected, Nalin refuted the charges against him, claiming that he was being framed. According to the charges, Kotadiya colluded with his nephew, Kirit Paladiya, to extort Bitcoin form Shailesh Bhatt in February this year. However, further investigations have unearthed Kirit as the mastermind of this entire incident, alongside SP Jagdish Patel.
Unfortunately, such incidences are adversely impacting the adoption of Bitcoin and other digital currencies. Criminals are continuously taking advantage of the peer-to-peer capabilities of cryptos to perform their heinous acts. Moreover, hackers are also taking over websites and other prominent online platforms and demanding ransom in Bitcoin or other altcoins.
While tracking crimes instigated by virtual currencies may seem difficult, it is not entirely impossible. For this reason, regulators have started demanding crypto exchange platforms and their clients to conform to KYC requirements. This would significantly reduce the extent of anonymity involved with cryptocurrency transactions. However, there is an argument that the enforcement of KYC could hinder decentralization, one of the cornerstones and key advantages of digital currencies.
In his defense, Kotadiya claims that the plaintiff, Shailesh Bhatt, was involved in a previous extortion of two traders, from whom he extorted a substantial amount of crypto assets. Evidently, the arrest of Nalin is just the beginning of a complicated case involving multiple parties.