Ahmedabad court sentences ex-MLA and officers to life in Bitcoin extortion.
When a courtroom in Ahmedabad delivered life sentences, it marked more than just a dramatic verdict; it was a wake-up call about how deep corruption can cut, even into India’s fast-moving crypto economy.
A Dark Story Unfolds
In February 2018, a Surat-based businessman named Shailesh Bhatt found himself drawn into a nightmare. After recovering crypto from a failed investment, he was abducted and held at a farmhouse near Gandhinagar. Among those orchestrating the plot were high-ranking figures and police officers, including the then Superintendent of Police Jagdish Patel, and politician Nalin Kotadiya. Their goal? Seize his Bitcoin and money by any means necessary.
Bhatt was forced to reveal that he'd recovered 752 BTC. He was compelled to surrender 176 of them and ₹32 crore in cash or face worse. Even when the transfer fell apart, Bhatt was coerced into selling 34 BTC, netting the criminals ₹1.32 crore.
When the news reached federal authorities, it sparked a sweeping investigation led by the CID Crime branch. Over time, 15 suspects were arrested. But gathering evidence was anything but straightforward; hundreds of witnesses recanted once in court, prompting perjury notices.
After an exhaustive and emotionally charged trial, the anti-corruption court handed life sentences, applying the full force of Section 364A of the IPC and the Prevention of Corruption Act. That hard line was a deliberate signal that public trust must be protected and constitutional rights upheld no matter who wields power or clings to it.
Justice Beyond Bars
What happened next felt almost symbolic. Gold ornaments seized from the former SP were ordered sent to the Master of Mint in Mumbai, not just as evidence, but as a gesture toward restitution. Every action in the trial—the prosecutor’s drive, witness scrutiny, and verdict sentencing—was a stitch toward restoring faith in the justice system.
Why It Still Matters
This verdict isn’t just about Bitcoin or a sensational crime; it’s about accountability in a rapidly evolving world.
India’s crypto economy has drawn sharp attention from underground syndicates to mainstream policy circles. When public servants use their authority to manipulate or exploit crypto wealth, the broader ecosystem suffers. Trust erodes just when we need transparency most.
Keep watching the broader impact too: Bhatt, the businessman, ended up facing unresolved legal questions himself, and the CBI is probing related cases. It’s a reminder that as cryptocurrency evolves, so must legal and ethical frameworks.
What’s Next
- Will this sentencing pave the way for deeper legal reform in crypto-related finance and public corruption?
- How will the justice system handle unresolved, related cases, especially those involving private actors and regulatory agencies?
- Will this legacy-scale case change the behavior of law enforcement or politicians in other jurisdictions?
