Eleven police officers believed their uniforms made them untouchable. That illusion was shattered when they kidnapped the wrong man for his cryptocurrency. What began as a quick-money Bitcoin scheme unraveled into a criminal conspiracy that ended with life sentences for 14 people, including a former politician. The case has once again laid bare the deep-rooted corruption that seems to be seeping through the highest levels of Indian law enforcement.
B.B. Jadav, Special Judge of the Ahmedabad Sessions Court, has recently delivered the landmark verdict against a criminal conspiracy that reads like a cryptocurrency thriller gone wrong. The convicted group includes 11 police officers and ex-BJP legislator Nalin Kotadiya, who represented the Dhari constituency of Gujarat from 2012 to 2017.
The court found all defendants guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault. The 11 police officers face additional corruption charges under the Prevention of Corruption Act for abusing their public office. Judge Jadav emphasized that “widespread corruption among public servants and private persons requires strong action,” making this verdict a powerful deterrent.
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The Elaborate Trap: How Police Became Kidnappers
The conspiracy began brewing when Kotadiya discovered that Bhatt had recovered 752 BTC from BitConnect developer Dhaval Mavani after the investment platform collapsed. Bhatt had already sold 576 coins for approximately $5 million, but still held 176 BTC worth millions more.
On February 9, 2018, the conspirators executed their carefully planned scheme. Criminals posing as Central Bureau of Investigation agents contacted Bhatt and lured him to a gas station under pretenses. The moment he arrived, they kidnapped him and transported him to a nearby farmhouse.
At the farmhouse, the 11 police officers held Bhatt at gunpoint. After threatening and beating him up, they forced him to confess to his cryptocurrency holdings. The kidnappers initially demanded his remaining 176 BTC plus ₹32 crore ($3.6 million) in cash.
After enduring hours of torture, Bhatt agreed to pay a reduced ransom to secure his release. The kidnappers, originally demanding a higher amount, coerced Bhatt into selling 34 BTC, transferring approximately $150,000 to their accounts.
The kidnappers were also unable to obtain the cash portion of the ransom, as the courier hired for the collection grew suspicious and refused to complete the delivery. Consequently, the criminals received only the Bitcoin payment, significantly less than their intended haul.
From Crime Scene to Courtroom: How Justice Caught Up
The criminals’ downfall began when Bhatt reported his ordeal directly to India’s Union Home Ministry after his release. This high-level complaint triggered a comprehensive investigation that quickly unraveled the conspiracy, leading to charges against the 15 individuals.
Kotadiya initially evaded arrest, remaining a fugitive for several months before authorities captured him in September 2018. The investigation revealed the shocking extent of police involvement, with 11 officers from various ranks participating in the scheme.
The prosecution built an impressive case by assembling 172 witnesses, including digital forensics experts who traced the Bitcoin transactions, bank officials who tracked fund transfers, and even some of the involved police constables who turned approvers and testified against their former colleagues.
However, the trial saw extensive witness intimidation, and 92 of the 173 witnesses turned hostile, retracting or drastically altering their original testimony. This massive obstruction of justice highlighted the power and reach of the accused. However, in the end, justice prevailed.
Judge Jadav responded decisively to this witness tampering by issuing perjury notices to 25 hostile witnesses at sentencing, sending a clear message about courtroom intimidation tactics.
The court found all defendants guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault. The 11 police officers received additional convictions under the Prevention of Corruption Act for abusing their public office, with Judge Jadav emphasizing that “widespread corruption among public servants requires strong action.”
In an ironic twist, victim Bhatt himself was arrested in August 2024 on charges of kidnapping two other BitConnect promoters and extorting them for 2,091 BTC, 11,000 LTC, and ₹14.5 crore ($1.73 million) in his own desperate attempt to recover his BitConnect losses. His separate case continues through Indian courts, showing how the cryptocurrency world’s collapse creates a cycle of victimization and revenge.
