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The Bitcoin extortion case in India reached a dramatic conclusion this week, as a Gujarat court sentenced 14 people, including 11 former police officers to life imprisonment for their role in the 2018 kidnapping of businessman Shailesh Bhatt, who was forced to hand over 176 BTC along with other funds.
According to court documents, the group included senior law enforcement officials, among them former Amreli district superintendent of police Jagdish Patel and former Bharatiya Janata Party (BJP) legislator Nalin Kotadiya. The court found that these officers abused their authority by orchestrating the abduction and extortion of the businessman.
“This judgment is intended to serve as a deterrent,” the court noted in its decision. “Corruption by public servants cannot be tolerated in any form.”
One of the accused, Jalin Patel, was acquitted after the court found insufficient evidence against him.
The Bitcoin extortion case reads like a crime thriller. Bhatt, the victim, had previously invested heavily in a Surat-based firm worth approximately ₹8,000 crore ($960 million). After the company collapsed, Bhatt reportedly acquired cryptocurrency assets from associate Dhaval Mavani.
Once news of these holdings reached Kotadiya and senior police officials, they allegedly devised a plan to seize the assets. In February 2018, Bhatt was abducted and taken to a farmhouse near Gandhinagar, where he was held under the watch of Amreli district officers.
Court records show that Bhatt was assaulted until he admitted to holding 752 Bitcoin, of which 176 Bitcoin were his own share with business partner Krit Paladiya. He also revealed that he had sold other tokens for approximately ₹44 crore ($5.2 million).
After being pressured to transfer the digital assets, Bhatt initially promised compliance but later failed to deliver the full amount. In retaliation, the accused forced him to sell 34 Bitcoin from Paladiya’s wallet, extracting an additional ₹1.32 crore.
“The abuse of power in this Bitcoin extortion case is unprecedented, with serving police officers acting as perpetrators rather than protectors,” said an official from Gujarat’s Criminal Investigation Department (CID), which pursued the case.
Bhatt eventually reported the matter to the Union Home Ministry, which directed him to file a criminal complaint with the CID in Gandhinagar. A first information report (FIR) was registered in April 2018, sparking an investigation that led to the arrest of 15 suspects.
During the trial, public prosecutor Amit Patel examined more than 170 witnesses. However, 92 later turned hostile, prompting the court to issue perjury proceedings against 25 of them.
Despite attempts by Bhatt to delay proceedings by appealing to higher courts, the trial concluded with life sentences for the accused.
“This ruling restores public confidence in the justice system,” Patel told reporters outside the courtroom. “The Bitcoin extortion case demonstrates that even those in uniform will face consequences when they betray public trust.”
Legal analysts say the verdict has broader implications for governance and accountability. By sentencing former police officers under the Prevention of Corruption Act and Section 364A of the Indian Penal Code, the court emphasized the seriousness of crimes committed by public officials.
The judgment also ordered the confiscation of gold jewelry seized from the Amreli superintendent of police, which will be processed by the Master of Mint in Mumbai.
“The court’s decision sends a strong message,” said Vikram Singh, former Director General of Police in Uttar Pradesh. “If officers are complicit in crimes like the Bitcoin extortion case, they will not be shielded by their uniforms or political connections.”
As cryptocurrency adoption continues to expand in India, the case underscores both the opportunities and risks associated with digital assets. It also highlights the urgent need for stronger oversight of law enforcement agencies.
In its final remarks, the court stressed that the punishment was not only about retribution but about setting an example. “Widespread corruption among public servants and private persons is required to be curbed with a strong hand,” the judgment read.
The Bitcoin extortion case remains one of the most high-profile examples of law enforcement corruption in India’s recent history. With life sentences handed down to 14 individuals, including senior officers, the case stands as a stark warning: those entrusted with upholding the law will face the full weight of justice if they abuse their power.
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