Ex-Indian Lawmaker to be 'Offender' in BTC Extortion Case

The name of Nalin Kotadiya appears in the case of 200 bitcoins which policemen allegedly extorted from businessman
19 June 2018   1517

The court found Nalin Kotadiya, a former member of the Indian Legislative Assembly, implicated in the case of extorting bitcoins worth $ 1.3 million, guilty of evading justice, says SoinDesk.

The city court of Ahmedabad granted the request of the Criminal Investigation Department (CID) to recognize Cotadia as a "fugitive". According to Indian law, an ex-deputy is prohibited from traveling abroad, he can be arrested by any resident of the country, said Indian Express.

This decision was followed after repeated calls by Nalin Kotadiya to the court, which he ignored. Representatives of CID, having a warrant for his arrest, also could not find him at home.

The name of Nalin Kotadiya appears in the case of 200 bitcoins (at that time about $ 1.7 million), which policemen allegedly extorted from businessman Shailes Bhatta in February this year. According to new data, Kotadiya contributed to the abduction of Bhatta.

As noted by CoinDesk, CID already suspected Bhutt and his partner Kirita Paladia of extorting about $ 22 million in cash and bitcoins from a member of BitConnect, a financial pyramid that ceased operations in India in January this year.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   168

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.