New Delhi, Aug 17 (PTI) A Gujarat-based man allegedly involved in kidnapping and extortion cases, including one related to cryptocurrency worth more than Rs 1,200 crore, has been arrested under the anti-money laundering law, the ED said Saturday.

Shailesh Babulal Bhatt was taken into custody on Tuesday, the central agency said in a statement.

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The money-laundering probe began after the Enforcement Directorate (ED) took cognisance of two FIRs filed by the Surat Police CID against one Satish Kumbhani.

The agency said Kumbhani was the promoter of a company called Bitconnect Coin, which lured investors to put their money in its schemes during 2017-18.

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Kumbhani, the ED alleged, abruptly closed the sale of Bitconnect Coin and shut its platform in January 2018 and fled after "swindling" public money.

Bhatt had also invested money in the company's schemes.

In order to recover his investment, Bhatt "kidnapped" two of Kumbhani's employees and "extorted" 2,091 Bitcoins, 11,000 LiteCoins and Rs 14.50 crore in cash as ransom.

These crypto funds are worth Rs 1,232.50 crore according to current exchange rates, the agency said.

Separately, the ED said, Bhatt distributed the proceeds of crime worth Rs 289 crore to his accomplices in lieu of their active participation in kidnapping and extortion that was further used to purchase immovable properties, gold and other assets. PTI

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)