Former MLA Arrested In Bitcoin Extortion Case In India

Sep 10, 2018 at 12:57 Update Date :Sep 10, 2018 at 12:57 UTC

A former BJP MLA, Nalin Kotadiya has been arrested for involvement with the kidnapping group of Shailesh Bhatt.

Kotadiya, who was fingered as a co-conspirator during the cross-examination of Kirit Paladiya in May this year had evaded arrest until Sunday, September 09. ANI reported his arrest by the Ahmedabad Crime Branch police from Maharashtra’s Dhuliya. This improvement is relied upon to quickly track the goals of the particular case where Kotadiya is being prosecuted as an offender in the Rs 9.95 crore bitcoin extortion case of Surat.

The ex-MLA was declared as wanted after failing to turn up for questionnaire following a summon by the court.  A complaint has been launched by CID concerning above- mentioned offence.

However, Kotadiya was claiming to be innocent over the convictions, claiming that he has been trapped. The case involves the kidnapping of Surat-based builder Shailesh Bhatt, and his ally and Kotadiya’s nephew Kirit Paladiya, in a bid to extort bitcoins from him, on February 11. Further, examinations uncovered the whole exercise to have been arranged by Paladiya and had connived with SP Jagdish Patel and others to coerce the cryptocurrency from Bhatt and to share the spoils.

This improvement is one of the normal stains on the bitcoin and cryptocurrency. Offenders have exploited the P2P frameworks in various known cases inside the ecosystem. Hackers have in various situations requested bitcoins or other altcoins as ransom over attacks on premium sites and platforms.

In its present state, however, tracking cryptographic money inclined money related crimes inside the ecosystem may seem complicated, however not impossible. This clarifies one reason why regulators demand KYC consistence from trades and their customers. This would reduce the extent of the degree of secrecy associated with dealing cryptographic money. How this will influence the decentralized attributes of digital instalment frameworks, in any case, another point that offers rise to the current discussion in the business.

Regardless of being charged, Kotadiya has asserted that Sailesh Bhatt, in the case is associated with an initial kidnapping case including two investors from whom he coerced 2,300 cryptocurrencies on February 1, 2018.

The arrest is only the most recent twist in the progressing case, and the arrest may very well be an initial step by the local Indian police towards unravelling the interlinked web of issues.

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