- •An Indian anti-corruption court sentenced 14 people, including 11 police officials and a former legislator, to life imprisonment.
- •The case involved the 2018 abduction of Surat businessman Shailesh Bhatt and the extortion of his Bitcoin holdings.
- •Convicted figures include ex-BJP MLA Nalin Kotadiya and former Amreli superintendent of police Jagdish Patel.
- •The court found them guilty of conspiracy, kidnapping for ransom, illegal detention, and corruption charges.
An Indian court has sentenced 14 people to life in prison in connection with a Bitcoin extortion case from 2018. The convictions include 11 police officials and a former legislator, highlighting a rare but significant crackdown on corruption tied to cryptocurrency.
The Case Background
The case dates back to February 2018, when Surat-based businessman Shailesh Bhatt was kidnapped and held at a farmhouse near Gandhinagar. Reports show he had partly recovered investments in the form of Bitcoin after the collapse of BitConnect, a crypto lending scheme that defrauded investors of more than $900 million globally.
Authorities said Bhatt’s recovery of Bitcoin attracted the attention of senior police officials in Amreli and former Bharatiya Janata Party (BJP) lawmaker Nalin Kotadiya. Together with other accomplices, they conspired to seize his crypto holdings.
How the Extortion Unfolded
According to court filings, Bhatt was abducted and beaten by the group, led by inspector Anant Patel of the Amreli crime branch. Under duress, he admitted receiving 752 Bitcoin from BitConnect developer Dhaval Mavani, with 176 of those coins held by his associate, Kirit Paladiya.
Bhatt was initially released after agreeing to transfer part of the Bitcoin and cash. When the deal collapsed, he was forced to sell 34 Bitcoin from Paladiya’s wallet, valued at around $150,000 at the time. The case eventually escalated when Bhatt filed a complaint with India’s Union home ministry, which directed him to the Criminal Investigation Department (CID) in Gandhinagar. The subsequent probe led to 15 arrests.
The Trial and Convictions
The special anti-corruption court in Ahmedabad, presided over by Judge B.B. Jadav, examined testimony from 173 witnesses, though many turned hostile during the proceedings. Despite procedural delays that stretched the trial across nearly six years, the evidence was found sufficient to convict 14 individuals.
Those sentenced include former Amreli district superintendent of police Jagdish Patel, former BJP MLA Nalin Kotadiya, and 10 other officers. All were convicted of criminal conspiracy, kidnapping for ransom, illegal detention, assault, and misconduct under the Prevention of Corruption Act. Kotadiya, who had been on the run since 2019, was captured last year after a prolonged manhunt.
The court also ordered the confiscation of gold jewelry seized from Jagdish Patel, valued at about ₹2.4 crore ($290,000), to be handed to the Master of Mint in Mumbai.
Related read: South Korean Police Bust Fake Exchange Ring
Broader Implications
This ruling stands out as one of India’s harshest sentences in a cryptocurrency-linked crime. The court stated that widespread corruption among public officials must be curbed with a strong hand and that this verdict should act as a deterrent.
The case also highlights how crypto-related fraud intersects with broader criminal activity. While the focus was on Bitcoin extortion, it ties back to the collapse of BitConnect, which left thousands of investors in Gujarat and elsewhere with heavy losses.
Looking Ahead
By sentencing 14 individuals, including 11 police officers and a former legislator, to life imprisonment, the Indian court has underscored its stance on corruption and crypto-linked crime. The Bitcoin extortion case demonstrates the risks surrounding digital assets in regions where oversight is evolving, and it sets a precedent for how similar cases may be handled in the future.
