Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
An Indian anti-corruption court has sentenced 14 individuals, including 11 police officials and a former Bharatiya Janata Party (BJP) Member of Legislative Assembly (MLA), to life imprisonment. The judgment, delivered by Special Judge B.B. Jadav in Ahmedabad, found the group guilty of kidnapping and extorting Bitcoin from a Surat-based businessman in 2018.
The Extortion Plot
Among those convicted are former Amreli district superintendent of police Jagdish Patel and ex-MLA Nalin Kotadiya. All 11 police officers, including former IPS officer Patel, were also found guilty under the Prevention of Corruption Act for misconduct by public servants.
The case revolves around businessman Shailesh Bhatt, who had reportedly recovered a portion of his lost investment from BitConnect developer Dhaval Mavani in the form of Bitcoin after the $900 million company shut down. Upon learning of Bhatt’s recovered assets, Kotadiya and senior officers in Amreli allegedly orchestrated a plan to seize the cryptocurrency.
On February 11, 2018, Bhatt was abducted and illegally detained at Keshav Farm near Gandhinagar. The kidnapping was reportedly led by Amreli local crime branch inspector Anant Patel and involved multiple officers.
Bhatt was subjected to beatings and coercion, forcing him to admit that he had received 752 Bitcoin from Mavani and stored 176 of them with his associate, Kirit Paladiya. The remaining Bitcoin had been sold for approximately $5 million.
He was released only after agreeing to transfer a portion of the Bitcoin and $3.6 million in cash. When this deal fell through, the accused then forced Bhatt to sell 34 Bitcoin from Paladiya’s wallet, leading to an extortion of $150,000.
Legal Proceedings
Bhatt subsequently filed a complaint with the Union home ministry, which initiated a criminal investigation into the matter. This led to the arrest of 15 individuals involved in the scheme.
During the extensive trial, the prosecution presented a total of 173 witnesses. The court’s judgment found the group guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault.
In addition to the life sentences, the court also ordered the confiscation of gold ornaments recovered from former Amreli SP Patel. These assets will be transferred to the Master of Mint in Mumbai as part of the judgment.
The sentencing underscores a significant legal precedent in India regarding crimes involving public officials, corruption, and the illicit acquisition of digital assets. The case highlights the risks associated with cryptocurrency holdings and the potential for abuse of power.
