Bitcoin extortion case: In new twist, complainant Bhatt is an accused

A fresh link with a similar case came to the fore on Monday as the CID crime branch sleuths drilled their investigation into the 176 bitcoins extortion and kidnapping incident. The latest case is also one of extortion and kidnapping where around Rs155 crores were taken from two bitconnect company investors, the officials said.

Shailesh Bhatt, who the cops took for a victim in the 176 bitcoins case, has turned out to be the main conspirator in the latest case, CID crime branch sleuths revealed.

While investigating the 176 bitcoin case, the sleuths began a parallel probe to find a lead to Shailesh Bhatt's bitcoins' source. Bhatt was also involved in abducting the victim that took place between January 30 and February 1.

A case was lodged against Shailesh Bhatt and his associates with the Surat CID crime on May 19. Ashish Bhatia, DGP of CID crime branch, said, "Shailesh Bhatt and his 9 associates had hatched a conspiracy to kidnap the two bitconnect company employees and extort the bitcoins from them. Bhatt was the main conspirator and the others were used as manpower."

According to the sleuths, the case started when Bhatt lost Rs2crore which he had invested in the bitconnect coin that closed in January. Bhatt already knew the company members as most of them were from Amreli, his native place. Out of this Rs2crore, he got Rs1.8 crore, the sleuths said. The associates have ben identified as Jignesh Marodiya, Kirit Vala, Nikunj Bhatt, Jignesh Kheni, Umesh, Bavaji, J.K Rajput, Dilip Kanani and Hitesh Jotasana.

Posing as Income tax officers, Bhatt and his associates abducted one Piyush Savaliya on 30 January. The gang thought Savaliya, an employee, to be the administrator of the company. He was held hostage for three days at a farmhouse in Surat, during which he coughed up the name of Dhaval Mavani, the administer.

Bhatt and his associates again impersonated as Surat Crime branch officers and abducted Mavani from the parking area of his office in Surat on 1 February.

Mavani was taken to a farmhouse in Surat where he was beaten up and threatened at gunpoint to transfer the bitcoins to their wallet. With the help of one Nikunj Bhatt, 2256 bitcoins, worth Rs131 crore, were transferred to Shailesh Bhatt's blockchain wallet.

Also, 11000 litecoins were converted to 166 bitcoins worth Rs9.64Crorre and was transferred to Shailesh Bhatt's Binance wallet. Apart from that, Rs14.50Crore cash was extorted from Mavani and it was transferred through a Surat-based Angadia firm. Also, Rs155Crore was extorted from Mavani.

Mavani was later released with threats never to be seen in Gujarat. According to sources, Mavani initially fled to Singapore and later went to Indonesia. Savaliya, on the contrary, was also threatened to be killed if he ever disclosed anything about the incident.

The extorted cryptocurrencies and money was distributed by Bhatt to his associates, where Jignesh Marodiya got 500 bitcoins, Kirit Vala got 350 bitcoins, Dilip Kanani 350 bitcoins, and Shailesh Bhatt got more than 700 bitcoins.

CID nabs two accused in the case

Two accused, named Nikunj Bhatt and Dilip Kanani, were nabbed by Surat CID crime from the Surat on Sunday. The duo was allegedly involved in the abduction and kidnapping case. During investigation, the sleuths recovered 152 bitcoins from Dilip Kanani’s blockchain wallet which has a market value of Rs 8.5crore. Shailesh Bhatt, who is on the run, has switched off his mobile phone, the cops said.

Kotadiya hiding in Nepal: Cops

Former MLA Nalin Kot adiya, whose name was revealed in the bitcoin case, is absconding over last 18 days. CID sleuths have issued a non-bailable warrant and a lookout notice against Kotadiya after he skipped two summons sent by the investigating agency. The cops believe that Kotadiya has fled to Nepal. Four teams of cops have been deployed to find him.

Case began in 2016; ED probes

CID officials said a major chunk of the extorted money was converted to bitcoins during the demonetisation period in 2016.

It is believed that a number of investors have converted their stack of black money into bitcoins.

The CID sleuths have also spoken to Income-Tax and Enforcement Directorate officials.

Bhatt had sent 25 men to Goa

Shailesh had sent around 25 people to Goa to search Satish Khum-bhani in January. Khu-mbhani had lau-nched the bitconnect coin. Shailesh got information that Khumbhani was in Goa and had planned to abduct him. Unfortunately, Khumbhani had already left Goa and fled to some other country, when Shailesh reached.

Kotadiya, Bhatt video record out

As per senior CID officials, they have recovered a voice record in which Kotadiya and Bhatt are speaking. Bhatt is heard laughing and narrating the abduction and extortion case to Kotadiya. The entire recording was done by Kotadiya.