The Directorate of Enforcement (ED) in Ahmedabad has conducted search operations in connection with the BitConnect cryptocurrency fraud case, seizing $198 million ( ₹1,646 crore approx.) worth of cryptocurrencies, along with $15,500 USD (₹13.5 lakh in cash approx.), a Lexus car, and multiple digital devices. The operation was carried out on February 11 and 15, 2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The investigation, based on FIRs registered by the CID, Crime, Police Station, Surat, revealed that between November 2016 and January 2018, BitConnect carried out an unregistered securities offering through its infamous Lending Program. 

Investors, including those from India, were promised returns of up to 40% per month through a so-called “volatility software trading bot” that claimed to generate massive profits.

However, authorities found that these returns were fictitious, and investor funds were siphoned off into digital wallets controlled by the accused rather than being used for trading. The scheme operated as a multi-level marketing (MLM) structure, with promoters earning commissions for recruiting new investors.

Investigators traced the flow of funds through a complex network of cryptocurrency wallets, some of which were routed through the Dark Web to obscure transactions. By tracking multiple wallets and gathering intelligence, the ED successfully identified and seized the digital assets.

This is not the first time the ED has acted against BitConnect. Previously, ₹489 crore ($58.8 million approx.) in movable and immovable properties linked to the fraud were attached.

Authorities have confirmed that foreign nationals also invested in BitConnect, and the main accused is under investigation in the United States. The case continues to unfold as further probes are underway.

BitConnect, once a major name in crypto investment circles, collapsed in 2018 following regulatory scrutiny. US authorities have already taken legal action against several individuals involved in the scheme. The latest crackdown by Indian authorities further highlights the global reach of cryptocurrency fraud.

The ED has stated that the investigation is ongoing, and more assets and individuals may be identified as part of the probe. Given the scale of the fraud and international involvement, cooperation between global law enforcement agencies is likely to continue.