Indian Court Hands Life Sentences in $150K Bitcoin Extortion Case
An Indian anti-corruption court has sentenced 14 individuals — including 11 police officials and a former Bharatiya Janata Party (BJP) legislator — to life imprisonment for their roles in the 2018 abduction and extortion of a businessman’s cryptocurrency holdings.
The verdict, delivered on Friday by Special Judge B.B. Jadav in Ahmedabad, found the group guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault, according to The Times of India.
Among those convicted are former Amreli district superintendent of police Jagdish Patel and ex-MLA Nalin Kotadiya. All 11 police officers were additionally convicted under India’s Prevention of Corruption Act.
Ex-MLA Nalin Kotadiya, ex-IPS officer among 14 sentenced to life term in bitcoin extortion casehttps://t.co/Mg4L2E5vmd pic.twitter.com/1h16MHip17
— DeshGujarat (@DeshGujarat) August 29, 2025
The 2018 Bitcoin Kidnapping
The case centers on Surat businessman Shailesh Bhatt, who had previously recovered a portion of his lost investment in the failed crypto platform BitConnect from its developer, Dhaval Mavani, in the form of Bitcoin.
Learning of this, Kotadiya and senior officers in Amreli allegedly orchestrated a plot to seize the funds.
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On February 11, 2018, Bhatt was abducted and detained at Keshav Farm near Gandhinagar.
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He was beaten and coerced into admitting that he held 752 BTC, with 176 stored by his associate, Kirit Paladiya, and the rest already liquidated for about $5 million.
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The kidnappers forced Bhatt to sell 34 BTC from Paladiya’s wallet, equivalent to around $150,000, and demanded millions more in cash.
Bhatt was released only after agreeing to transfer both cash and Bitcoin, though the full deal fell through.
Investigation and Trial
Following the incident, Bhatt filed a complaint with the Union Home Ministry, triggering a high-profile criminal investigation.
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Authorities eventually arrested 15 individuals connected to the case.
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Special public prosecutor Amit Patel presented testimony from 173 witnesses during the trial.
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The court also ordered the confiscation of gold ornaments recovered from SP Patel, to be handed over to India’s Mint in Mumbai.
Broader Context
The case highlights the intersection of corruption, law enforcement misconduct, and crypto crime in India.
Meanwhile, crypto-related crime continues to make headlines globally. Just last week, Thai authorities arrested a South Korean national accused of helping a call center gang launder over $50 million in cryptocurrencies into gold.
