The Enforcement Directorate (ED) has provisionally attached movable properties in the form of cryptocurrencies, gold and cash worth approximately Rs 433 crore in connection with a money laundering case against Divyesh Darji, the Asia head of a UK-based crypto company – Bitconnect, and others for their alleged involvement in a cryptocurrency scam in Gujarat.
Investigation so far has revealed that the said assets were not bought or acquired by the accused out of their legitimate income. Instead, these were derived/obtained as the result of commission of scheduled offences under the PMLA.
The agency’s investigation is based on a First Information Report (FIR) registered by the Surat Police and other laws against Divyesh Darji, Satish Kumbhani, Shailesh Bhatt and other accused.
The case was later transferred to the Enforcement Directorate, which started its probe and also invoked several sections of the Prevention of Money Laundering Act (PMLA) after it found out that the properties were acquired through unfair means.
According to the Enforcement Directorate, from November 2016 to January 2018, Satish Kumbhani, as the promoter of the cryptocurrency Bitconnect Coin, established a worldwide network of promoters and induced people to invest in various schemes related to Bitconnect Coin by offering huge returns.
“As per the investigation done so far, Satish Kumbhani and his associates had raised huge investments and cheated the investors. Later, a part of the proceeds of crime which were acquired by Satish Kumbhani and his associates, were extorted by Shailesh Bhatt and his accomplices by kidnapping two of the associates of Satish Kumbhani,” the agency said.
The provisionally attached movable properties are a part of the proceeds of crime acquired by Satish Kumbhani, Shailesh Bhatt and their accomplices, the Enforcement Directorate said.
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