Bitcoin News

Former BJP MLA Arrested In Bitcoin Extortion Case From India.

Kotadiya was investigated as an associate in the interrogation case of Kirit Paladiya who was evadeding arrest until he was arrested on yesterday on sunday i.e. 9th Sept. His arrest by the Ahmedabad Crime Branch police from Maharashtra’s Dhuliya was announced by ANI. This development is expected to fast-track the resolution of the actual case in which Kotadiya was being indicted as a victim in around Rs. 10 Crore bitcoin extortion case that took place in Surat.

The ex-MLA was declared as wanted by the court when he failed to show up for questioning following a summon. The summon was as a results of a case filed by the investing department  ‘CID’ in the above-named offense.

The ex-MLA ‘Kotadiya’ however, claimed his innocence denying his any involvement with the case. The case in question involves the kidnapping of Surat-based builder Shailesh Bhatt, and his associate and Kotadiya’s nephew Kirit Paladiya, in an exceedingly bid to extort bitcoins from him. However, investigations unconcealed the complete exercise to have been planned by Paladiya only, and had connived with SP Jagdish Patel along with others to extort the digital currency from Bhatt and to share the spoils.

This development is one among the common stains on the image of bitcoin and other digital currencies in the country. The peer-to-peer payment systems are taken advantage by criminals in several other known cases within the system also. There have also been several cases where hackers have conjointly demanded digital currencies as ransom over attacks on premium websites and platforms.

In its current state, however, chasing digital currencies inclined financial crimes within the network seem to be quite complex, however not completely unmanageable. This explains one among the explanations why regulators demand KYC compliance from exchanges and their usersThis however might on a large extent would reduce the mystery tracking related in managing the digital currencies.

Despite being indicted, Kotadiya has conjointly alleged that Sailesh Bhatt, the victim, in the case, is also connected in an previous case in which he extorted around 2,300 bitcoins from two investors back in Feb. this year only.

The arrest is however the most recent twist within this case.

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