AN Indian cryptocurrency trader, who amassed a US$40 million (RM167 million) fortune, was kidnapped by a police officer and seven others who demanded he transfer his bitcoin wallet to them, said authorities today.

Vijay Naik, 38, was abducted in the city of Pune on January 14 and told to hand over his digital fortune, along with 800,000 rupees (RM45,000) in cash.

He was abruptly released the next day, when the kidnappers realised police were on their tail. The perpetrators were detained yesterday.

Among the accused is Dilip Tukaram Khandare, a police officer who has been trained in cybercrime investigations and has come to learn of Naik’s bitcoin holdings.

“We have taken eight people, including a police constable who planned the abduction, into custody,” said a senior officer.

The case comes days after the arrest of several other officers accused of kidnapping a man in Jaipur and forcibly transferring US$1.2 million in bitcoin from his mobile into another account, according to local media reports.

Cryptocurrency remains largely unregulated in India, despite burgeoning local trading platforms and glitzy celebrity endorsements attracting millions of new traders.

The market was banned after a surge in fraudulent transactions in 2018, but restrictions were lifted two years later by the Supreme Court.

The government this week announced a 30% tax on profits from virtual currencies and the introduction of a “digital rupee” backed by India’s central bank. – AFP, February 2, 2022.