In a money laundering case against Divyesh Darji, the Asia head of UK-based crypto company Bitconnect, and others, the ED has attached movable properties worth Rs 433 crores. They are accused of involvement in a cryptocurrency scam in Gujarat, purportedly resulting in the siphoning of lakhs of rupees by enticing people with high returns on their investments.

The ED announced on Monday that the movable properties, consisting of cryptocurrencies, gold, and cash, have been attached as proceeds of crime. These assets were seized under the provisions of PMLA, 2002.

The ED launched an investigation based on FIRs filed by the CID Gujarat under various sections of the Indian Penal Code, 1860, Gujarat Protection of Interests of Depositors Act (GPID), 2003, and the Prize Cheat Money Circulation Scheme Banning Act, 1978, against Divyesh Darji, Satish Kumbhani, Shailesh Bhatt, and other accused individuals.

During the investigation under the PMLA, the ED disclosed that the properties were not acquired by the individuals through legitimate income. Instead, they were obtained as a result of committing scheduled offences under the PMLA.

The ED investigation uncovered that from November 2016 to January 2018, Kumbhani, the promoter of Bitconnect Coin, a cryptocurrency, established a global network of promoters. They enticed the public to invest in various schemes related to Bitconnect Coin by promising substantial returns.

According to the ongoing investigation, the agency stated that Kumbhani and his associates amassed significant investments and deceived the investors.

The ED stated that a portion of the proceeds of crime acquired by Satish Kumbhani and his associates was extorted by Shailesh Bhatt and his accomplices through the kidnapping of two of Kumbhani's associates.

The provisionally attached movable properties are a part of the proceeds of crime acquired by Satish Kumbhani, Shailesh Bhatt, and their accomplices. The primary accused in the case, Divyesh Darji, was apprehended at Delhi Airport in 2018 upon his return from Dubai.

Darji, a resident of the Adajan area in Surat, stands accused of defrauding investors of USD 12.7 billion through Bitconnect the Indian division of the UK-based Bitconnect, launched immediately after demonetisation.

Darji is also implicated in a Rs 22,000 bitcoin scam, and his involvement later emerged in another Rs 1,000 crore scam involving Dekado coin. This marks the third case in which Darji's name has been implicated.

Image source: ANI