ED Arrests Two in Expanding BitConnect Money-Laundering Probe

Investigators focus on concealed crypto flows through third-party wallets as reported asset attachments differ across outlets.

Overview

Nikunj Pravinbhai Bhatt and Sanjay Kotadia were arrested on January 19 under the PMLA in the BitConnect-linked case that also involves a kidnapping-extortion FIR.
They were produced before a special PMLA court in Ahmedabad on January 20, which granted four days of custodial remand citing non-cooperation and risk of evidence tampering.
The ED says Bhatt received at least 266 Bitcoins tied to the extortion case, routed about 246 Bitcoins via third-party accounts, and converted funds into ETH and USDT to obscure origin.
Investigators report transfers of roughly Rs 20.70 crore in USDT from Bhatt to wallets linked to Kotadia, with Kotadia also alleged to have received about Rs 4.05 crore from Shailesh Bhatt.
Searches on January 9 seized devices and documents and froze assets of about Rs 19 crore, while published totals of overall attachments diverge, with reports citing roughly Rs 2,170 crore or about Rs 270 crore.