On January 20, 2026, Indian authorities arrested Nikunj Bhatt (nephew of Shailesh Bubulal Bhatt) and Sanjay Kotadiya in connection with the BitConnect extortion case. Both men were produced before a special PMLA court in Ahmedabad and remanded to Enforcement Directorate (ED) custody until January 24, 2026.
The arrests stem from the 2018–2019 extortion scheme orchestrated by Shailesh Bhatt after the collapse of BitConnect, one of the largest MLM crypto Ponzi schemes in history.
BitConnect (run by Satish Kumbhani) defrauded investors of at least $2.4 billion globally before shutting down in January 2018. After the collapse, Shailesh Bhatt, himself a major investor, allegedly kidnapped and extorted two senior BitConnect employees to recover his losses.
The extortion yielded:
Shailesh paid ~$34.4 million to accomplices and used the rest to buy real estate, gold, and other assets. He was arrested in August 2024 and remains in custody.
According to the ED:
The ED says Nikunj’s custodial interrogation is necessary to recover wallet credentials, private keys, and exchange account details.
Sanjay Kotadiya’s specific role has not been publicly detailed yet.
This arrest highlights how the fallout from BitConnect, one of the most notorious crypto Ponzi schemes ever, continues to generate legal actions years later.
