Gujarat Bitcoin extortion case sees 14 convicted, including a former BJP legislator and police officer, exposing crypto-related corruption.
A local court in Ahmedabad delivered a significant verdict today, convicting 14 individuals, including a former BJP legislative assembly member and a police officer, for their involvement in a Bitcoin extortion racket. The case, which is a high-profile one that dates back to 2018, unveiled a perilous web of crime, cryptocurrency, and political intrigue within Gujarat.
Gujarat Bitcoin Extortion Case Involves ₹145 Crore Scam, 14 Convictions
The accused were a former BJP legislator, Nalin Kotadiya, and an ex-Indian Police Service officer, Jagdish Patel. The two were both life prisoners along with 12 other inmates. One was acquitted by the case. The probe into the case found the accused to have been a part of a sophisticated business of extorting large amounts of money in Bitcoin from unsuspecting businessmen.
The case was initiated by the extortion of 2,256 Bitcoins, valued at more than ₹145 crore, of a Surat-based businessman called Dhaval Mawani. Mawani had a Bitcoin enterprise, but he had swindled hundreds of businessmen. Central to the extortion case was the handing over of Bitcoins through the threat of violence by one of the case participants, Bhatt. He was first forcefully transferred 176 Bitcoins, which are worth ₹9 crore. The demands, however, grew fast, and Bhatt had to give out more money. The extortion values at one time reached ₹12 crore and finally ₹50 crore.
The case of Bitcoin extortion was no one-sided. Bhatt, the victim, also had a track record of engaging in unlawful activities. He was accused of hacking BitConnect workers and retrieving 2,021 Bitcoins, 11,000 Litecoins, and over 14 crores. Bhatt’s complaint exposed a larger scandal, revealing corruption among police officers and politicians.
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Crypto Bribery Scandal in Gujarat Exposes Corruption and Political Ties
As the investigation deepened, the CID Crime arrested 10 police personnel, including Anant Patel and Surat-based lawyer Ketan Patel. These arrests led to the involvement of other key figures, including former SP Jagdish Patel and ex-MLA Nalin Kotadiya. Kotadiya, charged as a fixer, went underground but was arrested in Maharashtra and granted conditional bail in 2019.
Additional research found further scandalous information. CBI Inspector Sunil Nair was accused of taking a 10 crore bribe from Bhatt. Nair purportedly threatened to interrogate Bhatt by the Enforcement Directorate (ED) and the Income Tax Department. Bhatt is alleged to have paid 4.6 crore to hush the case.
The case has finally been closed by the special court of Ahmedabad after a number of years of court proceedings. Twelve of the 14 guilty individuals who comprise senior police officials, CBI officer and a former legislator have been sentenced to life imprisonment. This judgment reveals the sickening interconnections of crime, cryptocurrency, and political influence in the circles of power of Gujarat.
The case raised doubts about the growing use of digital currencies like Bitcoin in criminal activities. It also highlighted the need for stricter regulations to prevent abuse and keep the cryptocurrency market open.
The ultimate judgment provides the case a certain degree of closure, yet the scandal is still being felt, and numerous questions remain as to which degree of corruption there was, and how cryptocurrency regulation in India will look in the future.
