Bitcoin extortion case in Gujarat: Special PMLA court remands two in Enforcement Directorate custody

Ahmedabad: A special PMLA court on Tuesday granted five-day custodial interrogation of two accused persons, Nikunj Bhatt and Sanjay Kotadiya, to the Enforcement Directorate till Jan 24 in connection with the infamous Bitcoin extortion case.Nikunj is the nephew of Surat-based businessman Shailesh Bhatt. ED filed a money laundering case in 2019 after Shailesh Bhatt and others were booked by CID (Crime) in 2018 for Bitcoin and Litecoin extortion from one Dhaval Mavani after kidnapping him. The extorted assets included 2,291 Bitcoins, 11,000 Litecoins, and approximately Rs 14.5 crore in cash, as per the documents.After their arrest, ED produced them before the court and sought 10-day remand of the duo, and the court partially granted the request, said their advocate, Aniq Shaikh.The ED stated that Nikunj's custodial interrogation is necessary as he still possesses knowledge of cryptocurrency wallet credentials, private keys, and exchange accounts. The federal agency wants to trace remaining proceeds of crime, identify beneficiaries, and prevent tampering with digital evidence.The ED stated that Nikunj also accompanied Shailesh during the extortion and later got a portion of the cryptocurrency proceeds. Nikunj admitted before ED sleuths to receiving 260 Bitcoins from his uncle. Of these, he transferred 19.99 Bitcoins to his Binance wallet and returned 240 Bitcoins to Shailesh within a few days.The ED alleged that Nikunj did not cooperate fully with the investigation, failed to provide details of counterparties involved in cryptocurrency transactions, and attempted to divert and obstruct the probe by giving false, incomplete, or evasive statements.The agency also pointed to the undisclosed acquisition of immovable properties in the name of a partnership firm, Maruti Enterprises, in which Nikunj is a partner. The funds for these properties were allegedly arranged by Shailesh.