In one of India’s most significant cryptocurrency-related crime cases, a special anti-corruption court in Gujarat has sentenced 14 individuals to life imprisonment. The convicted include former BJP legislator Nalin Kotadiya and several senior police officers, who were found guilty of kidnapping Surat businessman Shailesh Babulal Bhatt and extorting bitcoin from him in 2018.
The ruling was handed down by Special Judge B.B. Jadav in Ahmedabad. The accused were held guilty of criminal conspiracy, kidnapping for ransom, illegal detention, assault, and abusing public office. The judgment is being seen as a strong stand against corruption and digital asset crimes in India.
The Bitcoin Kidnapping of 2018
The case dates back to February 11, 2018, when businessman Shailesh Bhatt, who had earlier invested in the $900 million BitConnect scheme, was allegedly kidnapped. After recovering part of his funds in bitcoin from one of the developers, word spread about his holdings. This led to a conspiracy involving former MLA Kotadiya and then Amreli Superintendent of Police, Jagdish Patel.
Bhatt was abducted by Amreli Crime Branch Inspector Anant Patel and other officers, who took him to a farmhouse near Gandhinagar. There, he was assaulted and threatened at gunpoint to declare possession of 752 bitcoin. Under pressure, Bhatt revealed that 176 bitcoin were with his associate Kirit Paladiya while others had already been sold for around 5 million dollars.
Despite failed attempts to extract cash, the kidnappers forced Bhatt to transfer 34 bitcoin from Paladiya’s wallet, valued at about $150,000 at the time.
Cover-up Attempts and Witness Intimidation
Bhatt eventually approached the Union Home Ministry, which triggered a full-scale investigation and led to 15 arrests. The case exposed how several senior police officials abused their positions, not only by kidnapping but also by trying to cover their tracks.
The trial was protracted, involving 173 witnesses and nearly 300 documents. However, 92 witnesses turned hostile and some retracted earlier statements. Judge Jadav issued perjury notices to 25 of them, sharply criticizing attempts to interfere with justice.
Special Public Prosecutor Amit Patel argued successfully that the officers misused state power for personal gain, betraying the trust of the public.
The Convicts
Those sentenced include:
Nalin Kotadiya, former BJP MLA from Dhari
Jagdish Patel, ex-Amreli Superintendent of Police
Anant Patel, Crime Branch Inspector
Kirit Paladiya, businessman Shailesh Bhatt’s associate
11 police officers, convicted under the Prevention of Corruption Act
One accused, lawyer Jatin Dhiru Patel, was acquitted. The court also directed that gold ornaments seized from Jagdish Patel be handed over to the Master of Mint in Mumbai.
Political and Criminal Fallout
Kotadiya had gone underground before being arrested months later, his involvement raising serious concerns about Gujarat’s political environment.
However, the story also uncovers a controversial side to Bhatt himself. He is accused in another case involving the kidnapping of two BitConnect promoters and extorting over 2,000 BTC, 11,000 LTC, and significant amounts of cash. In August 2024, Bhatt was arrested again for money laundering and kidnapping, and his case remains ongoing.
The Gujarat bitcoin extortion case has been compared to a crime thriller involving corrupt politicians, rogue police officers, millions in cryptocurrency, and a victim who later turned accused.
04 September 2025
Country:
India
Topic:
Law & Crime