An Indian anti-corruption court has sentenced 14 men to life in prison for the 2018 kidnapping and extortion of a businessman over his cryptocurrency holdings.
Key Takeaways:
- An Indian court sentenced 14 men to life in prison for kidnapping a crypto investor in 2018.
- The victim was abducted at gunpoint and forced to transfer 34 BTC, with a larger ransom demand later thwarted.
- The victim himself is now under investigation in a separate crypto extortion case involving BitConnect promoters.
The convicted include 11 serving and former police officers and one former legislator, Nalin Kotadiya, who served in Gujarat’s Legislative Assembly from 2012 to 2017, per local outlets.
The group was found guilty of kidnapping, extortion, and conspiracy under various sections of the Indian Penal Code. The sentencing was handed down by Special Judge B.B. Jadav in Ahmedabad.
Indian Businessman Lured and Abducted in Crypto Extortion Plot
The case stems from the abduction of Shailesh Bhatt, a businessman from Surat, who was reportedly lured to a gas station on February 9, 2018, by men pretending to be officers from India’s Central Bureau of Investigation.
Once there, Bhatt was taken to a farmhouse near Gandhinagar and held at gunpoint by police officers demanding cryptocurrency and cash.
Bhatt was forced to sell 34 Bitcoin, worth approximately $150,000 at the time, and transfer the funds to his captors.
A larger demand of 176 BTC and ₹32 crore (roughly $3.6 million USD) in cash was also made, but the courier delivering the cash suspected a setup and failed to complete the drop.
Prosecutors brought in 172 witnesses during the trial, including digital forensics specialists and bank officials.
However, 92 of those witnesses later recanted or altered their testimony. Judge Jadav responded by issuing perjury notices to 25 of them, citing concerns over witness tampering and obstruction of justice.
All 11 police officers were additionally convicted under India’s Prevention of Corruption Act for misuse of official position.
BREAKING:
Gujarat court sentences 14 people to life imprisonment in a 2018 Bitcoin extortion case.
The group kidnapped a businessman & extorted 176 BTC + ₹32 Cr as ransom.
One of India’s biggest crypto-related crime scandals finally reaches verdict.
Source: TOI pic.twitter.com/SVzw7bfMu2
— Crypto India (@CryptooIndia) August 30, 2025
Kotadiya, who had evaded law enforcement for months, was eventually arrested in September 2018.
The case also puts a spotlight on Bhatt himself, who is currently facing legal proceedings for his alleged role in another crypto-related kidnapping.
Authorities claim Bhatt kidnapped two BitConnect promoters and extorted thousands of Bitcoin and Litecoin, along with over ₹14 crore in cash.
He was arrested in August 2024 by India’s Enforcement Directorate on charges including kidnapping and money laundering.
India’s ED Raids Crypto Fraud Network Tied to $29M Bitcoin Scam
Earlier this month, India’s Enforcement Directorate (ED) raided 11 locations across cities, including Delhi, in connection with a global crypto fraud scheme. The crackdown followed FIRs filed by the CBI and Delhi Police.
According to officials, the accused posed as law enforcement or tech support agents to extort money from both Indian and foreign nationals.
Investigators revealed that the fraudsters amassed over $29 million in Bitcoin, which was then converted to USDT and liquidated through hawala channels in the UAE.
The raids, conducted under the Prevention of Money Laundering Act (PMLA), targeted individuals and operators linked to the scheme.
The operation comes shortly after another ED probe into a separate $4.7 million crypto scam involving a spoofed Coinbase website.
Assets worth ₹42.8 crore, including 18 properties and bank credits, were provisionally seized from accused Chirag Tomar and his associates. CoinDCX has been appointed to manage seized digital assets amid the broader crackdown.
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