Former BJP MLA Nalin Kotadiya, who has evaded CID subpoenas twice has been arrested on Sep 9, 2018, for his alleged participation in the sensational bitcoin kidnapping of a complainer and a Surat-based realtor Shailesh Bhatt, and extortion case in which several other police officials, including the superintendent of police and an inspector of the local crime branch, have also arrested reported by the local media outlets of the country.
Kotadiya has claimed that many more are involved in the multi-crore bitcoin scam and have fled outside the country with the public money while siphoning off with various accounts. Earlier according to the deputy superintendent of CID AA Sayed claimed:
“We have concrete evidence against Kotadia. He is a politically influential person. His evading arrest could be an attempt to delay and create hindrance in the investigation.”
Earlier this year in May, Kotadiya, was identified as a partner in the scam during the interrogation of Kirit Paladiya. His arrest by the Ahmedabad Crime Branch police from Maharashtra’s Dhuliya was reported by ANI. Kotadia declared wanted by the court because of his non-presence which occurred after the plea filed by the CID to present in the court for the interrogation process with respect to the above-mentioned infringement. While asserting his innocence in the bitcoin extortion case Kotadia, claimed that Shailesh Bhatt, himself got abducted to extort 2,256 Bitcoins. Further, Kotadia said he was being framed and his name intentionally brought up on the surface and trying to drag him up in the controversy and corruption.
The case is about the two parallel issues- the abduction of Surat-based builder Shailesh Bhatt, and his associate including Kotadiya’s nephew Kirit Paladiya, in a bid to extort bitcoins from him, on February 11.
Although the investigations are disclosing the entire frame plotted by Kirit Paladiya with SP Jagdish Patel, and others to extort the crypto-currency from Shailesh Bhatt and to share the illgotten gains. It appears that the local Indian police have stepped closer to solve the perverted tale, with the probability of further intertwined stories.
The prevailing Issue
Not in India, the scams, extortions, and Ponzi schemes are spearheaded worldwide. So to say the peer-to-peer payment systems have been taken advantage by criminals which can be evidently seen in different known cases. Not surprisingly how hackers have also claimed bitcoin or altcoin as ransom over attacks on premium websites and platforms in a number of instances.
Probably now the naïve public will get the clarity why authorities and regulators are enforcing legal KYC compliance on the exchanges and their clients. This would largely reduce the extent of anonymity involved in dealing with cryptocurrencies.