Bitcoin News Today: Bitcoin Extortion Scandal Unveils Corruption at the Top

Ahmedabad: A special anti-corruption court in Gujarat has sentenced 14 individuals, including 11 police officials, to life imprisonment in a high-profile 2018 Bitcoin extortion case involving the kidnapping of a businessman. The accused included Jagdish Patel, a former superintendent of police in Amreli district, and Nalin Kotadiya, a former BJP MLA from the same district. The court, presided over by special judge B B Jadav, found the 14 guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault. They were also convicted under the Prevention of Corruption Act for misconduct by public servants. The court imposed life sentences under Section 364A of the Indian Penal Code and additional prison terms under other IPC and PC Act sections, in addition to fines. The case, which had elements of a crime thriller, involved the illegal detention of businessman Shailesh Bhatt at Keshav Farm near Gandhinagar. Bhatt had previously extracted 752 bitcoins from a failed investment in an Rs 8,000-crore Surat firm. Kotadiya and Patel, along with others, conspired to extort cryptocurrency from him. Bhatt was allegedly beaten and intimidated until he agreed to transfer 176 bitcoins and Rs 32 crore to secure his release. When the deal did not materialise, further extortion of Rs 1.32 crore via the sale of 34 bitcoins was carried out. The case came to light after Bhatt reported the extortion to the Union home ministry, prompting an investigation by the CID (Crime) in Gandhinagar. During the trial, 15 individuals were arrested, and 173 witnesses were examined by the special public prosecutor. Of these, 92 witnesses turned hostile, prompting the court to issue perjury notices to 25 of them under Section 344 of the Criminal Procedure Code. The court expressed concern over the witnesses’ alleged collusion with the accused, warning that such behavior undermines the judicial system and public trust. The verdict underscored the need to curb corruption among public servants and private actors, with the court stating that its decision carried significant societal implications. In addition to imprisonment, the court ordered the confiscation of gold ornaments seized from the Amreli SP and directed their transfer to the Master of Mint in Mumbai. Meanwhile, Bhatt himself faced a separate criminal investigation after his alleged involvement in the original extortion came to light. A CBI court continues to hear a case against him and his business partner Kirit Paladiya, as well as against CBI inspector Sunil Nair. The case has highlighted broader issues of corruption, misuse of public office, and the challenges of regulating digital assets like Bitcoin in India. The involvement of high-ranking law enforcement in the crime has sparked public and political outrage, raising questions about the integrity of the system meant to uphold justice. The conviction of former officials and politicians underscores the gravity of the offense and signals a firm stance by the judiciary against criminal activities involving public servants.

Source: [1] Bitcoin extortion case: Ex-BJP MLA, ex-SP among 14 ... (https://timesofindia.indiatimes.com/city/ahmedabad/bitcoin-extortion-case-ex-bjp-mla-ex-sp-among-14-handed-life/articleshow/123591797.cms) [2] Here's what happened in crypto today (https://cointelegraph.com/news/what-happened-in-crypto-today)