Crypto Kidnapping Scandal Rocks India: 14 Arrested Including Police Officers & Former MLA
Law enforcement cracks down on crypto-linked abduction ring—exposing deep corruption within India's system.
The Players Involved
Fourteen individuals now face justice, including active police personnel and a former Member of Legislative Assembly. These aren't small-time operators—they're insiders exploiting their authority.
How It Went Down
The scheme involved kidnapping victims under the guise of investigations, then demanding cryptocurrency ransoms. No sophisticated tech here—just old-school coercion meets new-age digital assets. Because why innovate when you can intimidate?
The Fallout
India's crypto community watches closely as authorities clean house. This case proves that while blockchain is trustless, the people running the show still need serious auditing. Another reminder that in crypto, sometimes the biggest risks aren't market volatility—they're wearing badges.
Key points:
According to The Times of India, the 14 convicted individuals include 11 current or former police officers and former legislator Nalin Kotadiya. Special Judge B.B. Jadav found them guilty of criminal conspiracy, kidnapping for ransom, unlawful detention, and assault, while one accused, Jatin Patel, was acquitted.
The 11 police officers, including Patel, were found guilty under the Prevention of Corruption Act for criminal misconduct by public servants, and the court imposed fines in addition to their life sentences.
In February 2018, Bhatt was tricked into visiting a gas station by individuals impersonating officers from India’s Central Bureau of Investigation. He was then abducted, taken to a farmhouse near Gandhinagar, where he was beaten and held at gunpoint while his captors demanded both cryptocurrency and cash.
Bhatt was compelled by his captors to sell 34 Bitcoin (BTC), valued at around $150,000 at the time, and transfer the proceeds to them. Subsequently, they demanded an additional 176 BTC along with ₹32 crore (approximately $3.6 million) in cash, but the courier assigned to deliver the money became suspicious and refused to complete the handover.
Although Bhatt was the victim in the kidnapping, his complaint to the Criminal Investigation Department (CID) prompted an investigation that uncovered his alleged involvement in a separate extortion scheme.
In August 2024, India’s Enforcement Directorate arrested Bhatt on charges that include kidnapping and money laundering. He is currently under investigation for his alleged role in another crypto kidnapping, in which he is accused of abducting two BitConnect promoters and extorting thousands of bitcoin and Litecoin, along with more than ₹14 crore in cash.
Despite the case dating back several years, crypto kidnapping has become more prevalent recently, with analysts pointing to Bitcoin’s record highs as a factor increasing the risk for digital asset holders.
The verdict spotlights growing concerns over the intersection of traditional crime and emerging digital assets, emphasizing the challenges law enforcement faces in keeping pace with evolving financial technologies.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the shiba inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
