An official from Indian opposition party the Indian National Congress (INC) has demanded a probe into a “mega Bitcoin scam,” The Hindu[1] reports July 5. The scam supposedly involves leaders of the majority Bharatiya Janata Party (BJP).
Senior INC member Shaktisinh Gohil alleged that BJP officials were complicit in a “multi-layered” scam[2] to launder money, which he claims the Criminal Investigation Department (CID) of Gujarat have estimated at Rs 5,000 crore, or about $723 million. The Hindu reports that the INC has demanded that the Supreme Court monitor an official investigation into into the matter.
Gohil said that BJP members used Bitcoin[3] (BTC) as a “cover-up” for money laundering and extortion. According to Gohil, the scam came to light[4] in April when Indian businessman and builder Sailesh Bhatt filed a complaint against Gujarat's Amreli district police claiming they extorted 200 bitcoins (about $2 million at the time) and demanded Rs 32 crore ($4.6 million) in cash.
Bhatt alleged that a BJP official and former Member of the Legislative Assembly (MLA) Nalin Kotadiya had pressured him to pay the ransom. The CID subsequently launched an investigation, wherein several officials were arrested[5], including Amreli district police superintendent Jagdish Patel.
Kotadiya has since absconded[6], and per the request of the CID, has been declared a proclaimed offender. The CID claim Kotadiya has “remained untraceable” even after a warrant was issued for his arrest. Gohil said[7] that "if he is arrested, he will reveal damning evidences which will expose top BJP leaders in the state."
Gohil accused the Modi government of turning a blind eye to the alleged scam, saying, “It is intriguing that the Modi government sends... authorities to hound Gujarat Congress
