Ahmedabad, Aug 18 (IANS): The Enforcement Directorate (ED) in Ahmedabad has arrested Shailesh Babulal Bhatt under the provisions of Prevention of Money Laundering Act (PMLA) as part of its ongoing probe into the extortion of 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in cash totalling Rs 1232.50 crore by the accused.

Bhatt was produced before the special PMLA court in Ahmedabad which sent him to ED custody.

The ED initiated the investigation on the basis of two FIRs registered by the CID (Crime), Surat, under the relevant sections of the law on charges of cheating the general public by Satish Kumbhani, promoter of Bitconnect Coin, by alluring people to invest in the firm in 2017-18.

Thereafter, Satish Kumbhani abruptly closed the sale of Bitconnect Coin and its landing platform in January 2018 and fled after swindling public money.

The ED investigation revealed that Shailesh Bhatt, in order to recover his investment from Satish Kumbhani, kidnapped two of his employees and extorted 2,091 Bitcoins, 11,000 LiteCoins, and Rs 14.50 crore in cash for the release of the kidnapped staff.

The investigation also revealed that Shailesh Bhatt distributed the proceeds of crime to his accomplices in lieu of their active participation in the kidnapping and extortion which was further used to purchase immovable properties, gold and other assets.

So far, movable and immovable properties to the tune of Rs 442 crore have been attached by the ED.

Further investigation is underway.