Former Indian Lawmaker Declared 'Offender' in Bitcoin Extortion Case

A former Indian politician allegedly involved in a $1.3 million bitcoin extortion case has been declared a "proclaimed offender" by a local court.

AccessTimeIconJun 19, 2018 at 11:00 a.m. UTC
Updated Sep 13, 2021 at 8:04 a.m. UTC

A former Indian legislator who was allegedly involved in a $1.3 million bitcoin extortion case has been declared a "proclaimed offender" by a local court.

According to The Indian Express, a sessions court in Ahmedabad granted an application from the state Criminal Investigation Department (CID) on Monday to declare Nalin Kotadiya an absconder from justice. According to Indian law, can now be arrested by any resident and is banned from leaving the country.

The decision comes after Kotadiya – a former Member of Legislative Assembly – failed to appear in court despite repeated summonses and after the CID could not reach him with an arrest warrant.

As previously reported by CoinDesk, Kotadiya's name surfaced when the CID started investigating the case in which businessman Shailash Bhatt accused 10 policemen of extorting 200 bitcoin (then worth around $1.7 million) from him by force in February.

According to the new report, Kotadiya is believed by the CID to have helped the police officers kidnap Bhatt.

In an intriguing twist to the tale, the CID is also accusing the apparent victim, Bhatt, and an associate, Kirit Paladiya, of extorting around $22 million – including cash and over 2,000 bitcoin – at gunpoint from a member of BitConnect, an alleged bitcoin Ponzi scheme which reportedly closed in India in January. Another report said Bhatt had previously invested in the scheme.

Indian police image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
Animoca Brands Leads $32M Funding Round for Planetarium Labs

The capital will help the Web3 gaming company develop its community-driven network.

CoinDesk - Unknown
CoinDesk - Unknown
Solana Labs, Multicoin Accused of Violating Securities Law by SOL Investor

Solana’s SOL token is an unregistered security whose insiders have benefitted while retail suffered, the suit alleged.

CoinDesk - Unknown
CoinDesk - Unknown
First Mover Asia: How Inaccurate Data Misled Investors to See Massive Outflows From This Crypto Exchange; BTC Holds Steady Over $20K

KuCoin founder Johnny Lyu said those data feeds plus mislabeled, on-chain wallets propagated rumors last week that led to the token exodus; ether rises in Wednesday trading.

CoinDesk - Unknown
CoinDesk - Unknown
Shiba Inu Plans to Launch Stablecoin, Reward Token, Collectible Card Game

SHIB prices hardly budged on the news but gas token BONE and ecosystem token LEASH rallied.

CoinDesk - Unknown