Kotadiya wasinvestigated as an associate in the interrogation case of Kirit Paladiya who was evadeding arrestuntil he was arrested onyesterday on sunday i.e. 9th Sept. His arrest by the Ahmedabad Crime Branch police from Maharashtra’s Dhuliya wasannounced by ANI. This development is expected to fast-track the resolution ofthe actualcasein whichKotadiya was being indicted as a victim in around Rs. 10 Crore bitcoin extortion case that took place in Surat.
The ex-MLA was declared as wanted by the courtwhen hefailedto showup for questioning following a summon. The summon was as aresults ofa case filed by the investing department ‘CID’ in theabove-namedoffense.
The ex-MLA ‘Kotadiya’ however, claimed his innocence denying his any involvement with the case. The case in question involvesthe kidnappingof Surat-based builder Shailesh Bhatt, and his associate and Kotadiya’snephewKirit Paladiya,in an exceedinglybid to extort bitcoins from him. However, investigationsunconcealedthe completeexerciseto havebeenplannedby Paladiya only, and had connived with SP Jagdish Patelalong with othersto extort the digital currency from Bhatt and to share the spoils.
This development isone amongthe common stains onthe imageof bitcoin and other digital currencies in the country. The peer-to-peer payment systemsaretaken advantage by criminalsin several otherknowncases within the system also. There have also been several cases where hackers haveconjointly demanded digital currencies as ransom over attacks on premium websites and platforms.
In its current state, however,chasingdigital currencies inclinedfinancialcrimeswithinthenetworkseem to be quite complex,howevernotcompletelyunmanageable. This explainsone amongthe explanationswhy regulators demand KYC compliance from exchanges and theirusers.This however mighton a large extent would reduce the mystery tracking related in managing the digital currencies.
Despite being indicted, Kotadiya hasconjointlyalleged that Sailesh Bhatt, the victim,in thecase, is also connectedinanprevious case in which he extortedaround 2,300 bitcoins from two investors back in Feb. this year only.
The arrestis howeverthe most recenttwistwithin thiscase.