Indian authorities crackdown on $145 million crypto extortion case involving Bitcoin and Litecoin
- India’s Enforcement Directorate detained an individual linked to a crypto extortion case involving 2,091 BTC, 11,000 LTC and cash.
- The authorities conducted a money-laundering investigation based on complaints registered in relation to Bitconnect Coin in 2017 and 2018.
- Bitcoin trades above $60,000 and Litecoin hovers under $68 on Sunday.
India’s money-laundering investigator authority, the Enforcement Directorate (ED) tracked down and detained an individual Shailesh Bhatt in connection with a $145 million crypto extortion case.
The man is accused of money-laundering and defrauding individuals through the ponzi scheme Bitconnect coin, between 2017 and 2018.
Indian authorities detain individual linked to $145 million crypto extortion case
An entrepreneur linked with the project Bitconnect coin allegedly extorted individuals and defrauded investors for nearly $145 million in cryptocurrencies. The digital assets in question include 2,091 Bitcoin, 11,000 Litecoin and nearly $1.72 million in cash.
The founder of Bitconnect was indicted in the US for his role in the multi-billion dollar fraudulent scheme, per information from the US Department of Justice (DoJ).
Bitcoin and Litecoin hover near key support
Bitcoin trades above $60,000, Litecoin hovers near $68 at the time of writing. The largest asset by market capitalization erased nearly 2% of its value in the last seven days. Bitcoin is likely to extend gains and rally towards resistance at $61,388, the 50% Fibonacci retracement of the decline from March 14 top of $73,777 to the August 5 low of $49,000.
BTC/USDT daily chart
Litecoin hovers around $68, extending gains by nearly 11% in the last seven days.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
