Divyesh Darji alleged for scamming millions from the citizens of India in the name of Bitconnect has been arrested. The arrest took place at the Delhi Airport when Divyesh arrived from Dubai. The scam was well framed and executed during the time demonetization took place in India. An attempt to find solace from the demonetization after effects, the company was formed.
Divyesh Darji’s Bitconnect was registered in the UK. However, the operations were carried from the Burj Khalifa, Dubai. The tallest structure since 2010 is now a hub for the million dollar scam. He was stationed in Dubai while making investors sulk over the invested funds.
Bitconnect made huge promises for providing huge returns. Nothing was ever accomplished. It is very disappointing to affirm that a good step to put the black market to a halt did gave few pricks an opportunity to play their cards.
The Indian government under the supervision of Prime Minister Narendra Modi, demonetized the INR 500 and INR 1000 notes in an attempt to curb black market. As per the government claims, the black money was being used to fund terrorist and illegal activist. And, the decision to demonetize the currency which took place in 2016 was a sudden shock for many Indians.
Stock market dropped, and the cash shortage soon became an epidemic. The economy fell down and people started panicking. Taking the lead from the opportunity, Divyesh knew that it was easy to make people believe in his illusionary dreams that he was selling to the investors. Bitconnect surged and investors got into its clutch.
The conferences were held, and people were terrified for keeping the paper money. As the bitcoin was already a success by then, it was easy to persuade people for investing in a digital currency. However, the victory was not long lived. The company collapsed in 2018. Many participants were arrested. The politicians and big figures were put behind bars. Satish Kumbhani, Dhavl Mavani, and Suresh Gorasiya were all caught for the trials.
P G Narwade from CID Gujrat Police confirmed the arrest. He said that the look out circular was already in notice. When Darji was travelling from Dubai to Delhi, the immigrant personnel informed the department about his journey plans. And, he was arrested. His plans were to reach Ahmedabad which he could not accomplish.
According to Narwade, the company released 2.80 crore coins. 1.80 crore coins out of the total coins were sold to the investors. The accused proposed a daily interest rate of 1 per cent to its investors for investing in the bitconnect coin. The cost of the coin on January 16, 2018, the same day when the company collapsed, was $362.
Another personal from CID crime, DGP Ashish Bhatia stated that Bitconnect was registered in the UK. However, the company had an office in Surat as well. The bitconnect coins were launched soon after demonetization.
According to Ashish Bhatia, the company promoted on social media and held many gala functions in cities across the world. The company promised 60% monthly interest. They also had referral incentives in place.
The officer even confirmed that this was the same company in which Shailesh Bhatt invested Rs 1.80 crore. He even allegedly kidnapped Dhaval Mavani and Piyush Savaliya from Bitconnect. Following which, he was able to extort 2,019 bitcoins, 11,000 litecoins and Rs 14.50 crore cash.
The Surat Zone CID was investigating this case and recovered 169 bitcoins and 8kg of gold from the accused place.