Fourteen people, including a former BJP MP and a former Indian Police Service (IPS) officer, have been sentenced to life imprisonment by an Indian court for extorting bitcoin from a cryptocurrency trader in a case registered in 2018.
According to a press release issued by the Gujarat Criminal Investigation Department (CID), the sentence was handed down by a local court in Ahmedabad on Monday after a long legal battle against eight accused, who were joined by two others arrested later.
"Former BJP MP Nalin Kotadiya, former IPS officer Jagdish Patel and 12 other defendants were sentenced to life imprisonment for a 2018 bitcoin extortion and kidnapping case involving police officers and high-profile conspirators," reported IndiaToday on X.
Former BJP MLA Nalin Kotadiya, ex-IPS officer Jagdish Patel, and 12 others have been sentenced to life imprisonment in a 2018 bitcoin extortion and builder kidnapping case that involved police officers and high-profile conspirators.
- IndiaToday (@IndiaToday) August 29, 2025
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Bitcoin kidnap and ransom
The charges against the convicts relate to the 2018 kidnapping of Surat businessman Shailesh Bhatt, who was forced to pay a bitcoin ransom to his captors.
According to CID investigations, in March 2018 Bhatt met some people in Gandhinagar who introduced themselves as Central Bureau of Investigation (CBI) officials. Subsequently, the kidnappers took Bhatt to a cottage from a petrol station using two government vehicles.
There, the accused - including then BJP MP (now regional councillor) Nalin Kotadiya and former IPS officer Jagdish Patel - extorted 200 Bitcoins, worth ₹12 crore (about $1.67 million at the time), from the victim. The gang had also demanded an additional ransom of ₹32 crore ($4.44 million) in cash.
It was later discovered that the victim, Bhatt, was involved in a ₹150 crore ($20.9 million) Bitcoin theft from another Surat resident, Dhawal Mawani. Learning of this, Kotadiya, Patel and other defendants had then devised a plan to kidnap and extort Bhatt as well.
The CID opened an investigation after Bhatt filed an official complaint. During the investigation and trial, the police arrested ten officers, including Inspector Anant Patel, and a lawyer named Ketan Patel.
The interrogation of these led the CID to Kotadiya and Jagdish Patel. Kotadiya was absconding to avoid arrest, but the police managed to catch him on a non-bailable warrant. The investigation also revealed the involvement of CBI inspector Sunil Nair, who - after being bribed by Bhatt - threatened to arrest the victim.
Sentence and judgment
The CID presented the evidence in court and, on Monday, the local court in Ahmedabad pronounced the sentence. Kotadiya, Patel and twelve other defendants were found guilty of conspiracy, kidnapping and extortion and sentenced to life imprisonment.
The verdict represents one of the most important cases in India involving an official accused of conspiracy, crime and extortion involving a politician, the police and Bitcoin.
With this verdict, the Gujarat court has also highlighted how cryptocurrencies continue to be in the crosshairs of corruption and high-profile crime in India.
