Indian Court Sentences 14 to Life in Bitcoin Extortion and Kidnapping Case

Court Hands Down Life Sentences in High-Profile Bitcoin Extortion Case

In a landmark ruling, a special anti-corruption court in Ahmedabad has sentenced 14 individuals — including 11 police officials and a former Bharatiya Janata Party (BJP) legislator — to life imprisonment for their role in the 2018 kidnapping and extortion of a Surat-based businessman.

The verdict, delivered by Special Judge B.B. Jadav, found the accused guilty of criminal conspiracy, kidnapping for ransom, illegal detention, assault, and violations under the Prevention of Corruption Act.

Among those convicted are:

• Jagdish Patel, former superintendent of police in Amreli

• Nalin Kotadiya, former BJP MLA

• Multiple local police officers, including then-crime branch inspector Anant Patel

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The 2018 Bitcoin Kidnapping Plot

The case revolves around Shailesh Bhatt, a Surat businessman who had invested in the collapsed crypto platform BitConnect, which lost investors over $900 million.

Bhatt reportedly managed to recover part of his funds in Bitcoin from developer Dhaval Mavani. Upon learning this, ex-MLA Kotadiya and senior Amreli police officials allegedly conspired to seize his holdings.

Ex-MLA Nalin Kotadiya among 14 arrested. Source: DeshGujarat

On February 11, 2018, Bhatt was abducted and held at Keshav Farm near Gandhinagar. He was:

• Beaten and coerced into admitting he had received 752 BTC (worth tens of millions at the time).

• Pressured into revealing that 176 BTC were stored with his associate Kirit Paladiya.

• Forced to sell 34 BTC, amounting to around $150,000, under duress.

Bhatt was released only after promising additional transfers, including $3.6 million in cash, though those transactions never materialized.

Investigation and Trial

Following Bhatt’s complaint to the Union Home Ministry, a criminal probe was launched, resulting in 15 arrests.

The prosecution, led by Special Public Prosecutor Amit Patel, presented 173 witnesses during the trial, ultimately securing convictions against all major accused.

The court also ordered the confiscation of gold ornaments recovered from SP Patel, which will be handed over to the Master of Mint in Mumbai.

Wider Context: Crypto and Crime

The conviction highlights growing global scrutiny of cryptocurrency-linked crimes. Just last week, Thai authorities arrested a South Korean national accused of laundering over $50 million in illicit crypto into gold for a call-center fraud ring.

Conclusion: A Precedent-Setting Judgment

The ruling against corrupt police officials and a former legislator marks one of India’s most significant crypto-related criminal convictions to date. It underscores both the risks associated with digital assets in emerging markets and the growing willingness of courts to impose strict penalties for crypto-linked crimes.

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FAQs

1. What was the 2018 Bitcoin extortion case in India?

It involved the kidnapping of Surat businessman Shailesh Bhatt, where police officials and an ex-MLA conspired to extort his Bitcoin holdings.

2. Who were convicted in the Bitcoin kidnapping case?

14 individuals, including 11 police officials, former BJP MLA Nalin Kotadiya, and ex-SP Jagdish Patel, were sentenced to life imprisonment.

3. How many Bitcoins were involved in the case?

Victim Shailesh Bhatt was forced to admit possession of 752 BTC and to sell 34 BTC under coercion.

4. Why is this ruling significant for crypto in India?

It marks one of the strongest judicial actions against crypto-linked crimes, setting a precedent for strict penalties.

5. Does this case affect Bitcoin’s legality in India?

No, the case targeted criminal misuse of Bitcoin, not its legal trading or investment status in India.