GainBitcoin Scam: CBI Seizes Cryptocurrencies Worth Rs24 Crore after Raiding 60 Locations

Moneylife Digital Team 27 February 2025

Economy & Nation

The central bureau of investigation (CBI) has seized cryptocurrencies valued at about Rs24 crore as part of its extensive probe into the GainBitcoin scam. The nationwide crackdown involved coordinated searches at over 60 locations across India, targeting key accused individuals, their associates, and entities suspected of laundering illicit funds.

The searches, conducted in cities including Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi and Hubli, led to the discovery of cryptocurrencies worth Rs23.94 crore. The agency also confiscated multiple hardware crypto wallets, incriminating documents, 34 laptops and hard disks, and 12 mobile phones.

According to a release from CBI, these materials are currently under forensic examination to trace the misappropriated funds and identify any potential international transactions linked to the scam.

The GainBitcoin scheme, initially launched in 2015 by the late Amit Bhardwaj and Ajay Bhardwaj and their network of agents, was an alleged Ponzi scheme disguised as a cryptocurrency investment platform. Operating under the facade of Variabletech Pte Ltd, the scheme lured investors through websites like gainbitcoin.com, promising exorbitant monthly returns of 10% in Bitcoin for 18 months.

Investors were encouraged to purchase Bitcoin from exchanges and invest them in so-called 'cloud mining' contracts. The scheme functioned as a multi-level marketing (MLM) operation, where returns were primarily dependent on recruiting new investors, a hallmark of pyramid schemes.

Initially, payouts were made in Bitcoin, but as investor inflows declined by 2017, the scheme began to unravel. In an attempt to obscure losses, GainBitcoin switched payouts to its in-house cryptocurrency, MCAP, which held significantly lower value than Bitcoin, leading to further deception and losses for investors.

Citing large-scale fraud and money laundering, multiple first information reports (FIRs) were filed across India against GainBitcoin and its promoters. Due to the magnitude and complexity of the case, the Supreme Court transferred multiple cases from states such as Jammu & Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra to the CBI for a comprehensive investigation.

CBI’s efforts have so far led to the seizure of crucial digital evidence, including crypto wallets, emails, and cloud-based data. The agency is also examining possible links to international transactions that may have facilitated the laundering of proceeds.

Comments

User

albertoposada821

4 weeks ago

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