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The Central Bureau of Investigation (CBI) has made progress in its probe into the GainBitcoin, seizing cryptocurrencies worth ₹23.94 crore along with key digital and physical evidence. The nationwide crackdown targeted over 60 locations across multiple cities, including Delhi, Nanded, Kolhapur, Chandigarh, Mohali, Jhansi, Hubli, Mumbai, Bengaluru, and Pune.
The investigation revolves around GainBitcoin, a fraudulent investment scheme launched in 2015 by Amit Bharadwaj (now deceased), Ajay Bharadwaj, and associates.
Bharadwaj was arrested in March 2018, and investigators found that the scammers operated 84,617 user IDs and accumulated over 80,000 Bitcoins. Before duping investors, Bharadwaj built a background by writing books and being invited as a conference guest speaker.
Bharadwaj also launched India’s first Bitcoin-based e-commerce platform, HighKart, in 2014.
The scam promised investors 10% monthly returns on Bitcoin investments over 18 months, operating under a multi-level marketing (MLM) model. Initially, investors received payouts in Bitcoin, but as the scheme progressed in 2017, they were instead compensated with MCAP, an in-house cryptocurrency with significantly lower value — leading to widespread losses.
After 2017, Bharadwaj shifted to Dubai and continued scamming Indian citizens from there.
CBI has confiscated around 121 crucial documents, 34 laptops and hard disks, 12 mobile phones, email records, and instant messaging data.
The agency is now analysing the seized electronic devices and documents to trace the misappropriation of funds, including international transactions.
“The seized documents and electronic devices are currently under analysis to uncover further details regarding the misappropriation of funds and potential international transactions linked to the scam,” the agency wrote.
First Information Reports (FIR) were filed in multiple states related to the scam, such as Jammu and Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra. Later, the Supreme Court transferred the case to the CBI.
Along with the CBI, another Indian investigative agency, the Enforcement Directorate, is probing the money laundering aspect of the GainBitcoin scam.
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