An Indian anti-corruption court has handed down life sentences to fourteen individuals, including eleven police officers and a former lawmaker. They were found guilty of kidnapping a cryptocurrency investor back in 2018. This case highlights a disturbing trend of corruption mixing with digital assets, even within law enforcement ranks.
The ruling came from a special judge, B.B. Jadav, in Ahmedabad. Those convicted faced charges of kidnapping, extortion, and criminal conspiracy under the Indian Penal Code. The police officers also faced additional charges for abusing their public office. The Block reported on this significant decision, noting the serious implications of high-ranking officials being involved in such a scheme.
The drama unfolded on February 9, 2018, when the victim, Shailesh Bhatt, was tricked into going to a gas station. Men pretending to be from India’s Central Bureau of Investigation (CBI) met him there. They quickly moved him to a nearby farm. There, these corrupt officers threatened him with firearms.
The kidnappers demanded a huge ransom: 176 Bitcoin and ₹32 crore in cash. At the time, this was worth about $3.6 million USD. After some back-and-forth, Bhatt agreed to sell 34 Bitcoin. He then sent around $150,000 to his captors. The plan to deliver the cash fell apart. The person carrying the money grew suspicious and refused to complete the drop-off.
The court battle involved testimony from 172 witnesses. Digital forensics experts, bank officials who traced money transfers, and even several police informants contributed to the case. But the path to justice was bumpy. A striking 92 witnesses changed or took back their statements, hinting at possible intimidation. Judge Jadav even had to issue perjury notices against 25 of them for lying under oath.
Among those convicted was Nalin Kotadiya, a former member of the Gujarat legislative assembly for the Amreli district. Kotadiya had vanished for months after the crime, only to be caught in September 2018. His involvement further darkened the scandal, showing how deep the corruption ran.
The story of Shailesh Bhatt, the victim, adds another layer of complexity. Bhatt himself has faced accusations. He allegedly kidnapped two promoters of the defunct cryptocurrency project BitConnect. He then reportedly extorted them for 2,091 Bitcoin, 11,000 Litecoin, and ₹14.5 crore in cash, totaling around $1.6 million USD back then. India’s Enforcement Directorate arrested Bhatt on August 13, 2024, on charges of kidnapping, money laundering, and other serious offenses.
Bhatt’s own legal troubles are still making their way through the courts. This leaves a tangled picture where the line between victim and perpetrator blurs. The case shows the wild, unpredictable side of crime tied to digital currencies in India.
Source: The Block