Former Indian Politician Found Guilty in High-Profile Bitcoin Extortion Scandal

Power meets punishment as crypto crime gets its day in court.

Political Fallout

A former Indian politician faces consequences after conviction in a Bitcoin extortion scheme—proving even traditional power players can't outrun blockchain's transparency. The case highlights crypto's growing role in both legitimate finance and, well, less savory activities.

Legal Reckoning

Authorities secured the conviction using digital evidence trails that even political influence couldn't erase. The verdict sends a clear message: attempting to exploit cryptocurrency for illegal gains carries real-world consequences—unlike some token valuations that seem to defy gravity without any underlying utility.

Another reminder that in the crypto world, the code doesn't care about your title or connections.

Life Sentences in 2018 Extortion Case

A local court in Ahmedabad delivered today’s verdict, concluding the high-profile case that dates back to 2018. 

Fourteen people, including former BJP legislative assembly member Nalin Kotadiya and ex-Indian Police Service officer Jagdish Patel, were found guilty and sentenced to life in prison. One individual was acquitted.

Former BJP MLA Nalin Kotadiya, ex-IPS officer Jagdish Patel, and 12 others have been sentenced to life imprisonment in a 2018 Bitcoin extortion and builder kidnapping case that involved police officers and high-profile conspirators.

The City Sessions Court's ACB Special Court… pic.twitter.com/9qQPFVZEzn

This landmark ruling concludes an extensive trial that exposed a corruption trail involving high-profile individuals in Gujarat.

A Crime Unraveled

The case began with the kidnapping of Shailesh Bhatt, a businessman and cryptocurrency trader from Surat.

According to reports, individuals pretending to be from India’s Central Bureau of Investigation (CBI) lured him to a meeting in Gandhinagar. 

Instead, he was abducted from a gas station. A team of police officers using official government vehicles then took Bhatt to a farmhouse.

The accused seized 200 Bitcoins, valued at approximately ₹12 crore at the time, and demanded a ransom of ₹32 crore. 

The investigation further revealed that Bhatt had previously stolen Bitcoins worth ₹150 crore from another Surat resident named Dhawal Mawani. Upon learning this, the accused—including Nalin Kotadiya—conspired to rob Bhatt.

Unmasking the Conspirators

Bhatt set off the investigation when he submitted a formal complaint to the Indian Criminal Investigation Department (CID). 

As the investigation deepened, the CID arrested ten police officers, including Anant Patel and Surat-based lawyer Ketan Patel.

Their interrogations soon revealed the names of Jagdish Patel and Kotadiya. Kotadiya went into hiding, and a non-bailable warrant was issued before his eventual arrest. 

The scope of the conspiracy widened further with the involvement of a genuine CBI Inspector, Sunil Nair. Nair reportedly demanded a bribe from Bhatt and threatened to initiate an investigation against him.

The court’s decision ultimately marked a major step against corruption and criminal activity involving police officials, politicians, and cryptocurrency.