"India Seizes $190M in BitConnect Crypto Scam, SUV, Cash"

Indian authorities have made a significant breakthrough in the BitConnect crypto scam, retrieving approximately $190 million in a real-world seizure of digital devices. The Directorate of Enforcement (ED) tracked down the devices containing the wallets of the scammed crypto and successfully retrieved the physical devices. In addition to the crypto assets, authorities also seized a black Lexus SUV and about $15,500 in cash.

The BitConnect scheme, alleged to be a Ponzi-style scam by the US Securities and Exchange Commission in 2022, promised investors 40 percent monthly returns using a bot that claimed to exploit crypto price volatility. However, the reality was that the scheme's founder, Satish Kumbhani, and promoter, Glenn Arcaro, were funneling investor funds into wallets they controlled, rather than investing as claimed.

Despite the recent recovery, the seized amount represents only a small fraction of the estimated 325,000 Bitcoin taken from investors. In 2018, this amount was valued at $2.4 billion, but is now worth more than $31 billion. Authorities have transferred the recovered coins to their own accounts, but it remains unclear whether repayments will be made to victims and who will be eligible.

In a statement, authorities revealed that they found numerous transactions were carried out through the dark web to make them untraceable. However, by tracking multiple web wallets and gathering ground intelligence, the ED was able to identify the wallets and the premises where the digital devices containing the cryptocurrencies were located.

While Glenn Arcaro pleaded guilty to conspiracy charges in 2023 and agreed to make restitution payments of over $17 million to more than 800 BitConnect investors, the scheme's founder, Satish Kumbhani, remains missing. Indian authorities continue to investigate the case and work towards recovering the remaining funds for the victims of the scam.