The case traces back to the infamous BitConnect Ponzi scheme, a massive cryptocurrency fraud that collapsed in early 2018, causing billions in losses worldwide. Shailesh Bhatt, a Surat-based businessman and investor in BitConnect, allegedly kidnapped two employees of BitConnect promoter Satish Kumbhani. He extorted significant cryptocurrency assets, including over 2,000 Bitcoins, thousands of Litecoins, and millions in cash to recover his losses. Bhatt later used the proceeds to purchase real estate, gold, and other assets.
In a twist, former police officers learned of Bhatt’s actions and allegedly turned the tables. In February 2018, Bhatt himself was kidnapped along with his business partner from Gandhinagar. The accused, including then-Amreli Superintendent of Police Jagdish Patel, former BJP MLA Nalin Kotadiya, and other officers, were accused of illegally detaining, assaulting, and extorting cryptocurrency and cash worth around ₹32 crore (equivalent to millions in Bitcoin at the time) from Bhatt. Bhatt filed a complaint against the officers for kidnapping and extortion.
After a lengthy trial in Ahmedabad’s Anti-Corruption Bureau (ACB) Special Court, 14 individuals (including Jagdish Patel and Nalin Kotadiya) were convicted in August 2025. The prosecution presented evidence from 172 witnesses, while the defense had limited support. The court found them guilty of charges including kidnapping for ransom, criminal conspiracy, and related offenses under the Prevention of Corruption Act. All 14 were sentenced to life imprisonment, marking a landmark ruling in India’s crypto-related crime cases.
In a recent development in March 2026, the Gujarat High Court suspended Jagdish Patel’s life sentence and granted him conditional bail pending the outcome of his appeal. The bench noted that the case against Patel relied primarily on circumstantial evidence. He was not directly present at the kidnapping location or the site where the victim was held. There was no record of direct communication with the co-accused during the offense period, nor any proof that he personally derived financial benefits from the extortion. Patel has been released on bail (with conditions, including potential permission to travel abroad in some reports), while his appeal continues in the High Court. It remains unclear if other convicted individuals have sought similar relief.
