14 Sentenced to Life for Bitcoin Extortion in India

In a significant judicial ruling, fourteen men have received life sentences from an anti-corruption court in India for their involvement in the 2018 kidnapping of Shailesh Bhatt, who was targeted for his cryptocurrency assets. Among the convicts are eleven police officers, including the former district superintendent, and a former legislative assembly member. Judge B.B. Jadav in Ahmedabad presided over the case, where the defendants were found guilty of kidnapping, extortion, and criminal conspiracy, as per local reports. The case stemmed from an incident on February 9, 2018, when Bhatt was deceived into visiting a gas station by individuals masquerading as agents from India’s Central Bureau of Investigation. Once there, he was abducted and held at a farmhouse, where he faced threats from armed police officers until he capitulated to their ransom demands. Initially, the kidnappers sought 176 BTC and ₹32 crore (approximately $3.6 million USD), but after negotiations, Bhatt managed to transfer 34 BTC, worth about $150,000 USD, to them. A promised cash delivery was thwarted when the courier became suspicious and failed to complete the transaction. The prosecution's case relied on testimonies from 172 witnesses, including digital forensic experts and bank officials. However, 92 witnesses turned hostile during the trial, casting doubt on the reliability of the evidence and suggesting possible witness intimidation. In response, Judge Jadav issued a notice of perjury to 25 hostile witnesses at the time of sentencing. The implicated police officials were not only convicted of kidnapping and extortion but also faced additional charges under corruption laws for misusing their positions. Nalin Kotadiya, who previously served in the Gujarat Legislative Assembly, evaded arrest for several months before his capture in September 2018. In a twist, Shailesh Bhatt has also been implicated in crimes of his own, accused of kidnapping BitConnect promoters and extorting them for over 2,000 BTC and substantial cash sums. He was arrested by the Enforcement Directorate in August 2024 and faces multiple charges related to kidnapping and money laundering. Bhatt's legal battles are ongoing in Indian courts.