On Wednesday, the Central Bureau of Investigation (CBI) searched multiple cities, including Mumbai, Pune, Nanded, and Kolhapur, as part of its probe into the alleged multi-crore GainBitcoin cryptocurrency fraud. The private company, Variable Tech Pte Ltd, reportedly operated this Bitcoin-based multi-level marketing scheme.
Also Read: How Trump’s ‘Gold Card’ US visa could work, what concerns it raises
CBI Seizes ₹23.94 Crore in Crypto in GainBitcoin Scam
The CBI confiscated cryptocurrencies worth ₹23.94 crore, along with documents and electronic devices, and is examining them for links to the alleged fund misappropriation and international transactions in the scam. CBI officials stated that the searches, which focused on locations connected to the accused, their associates, and entities suspected of money laundering, uncovered various items with potential evidentiary value. In addition to the four Maharashtra cities, the agency carried out coordinated searches in the National Capital Region, Chandigarh, Bengaluru, Mohali, Jhansi, Hubli, and other cities.
A CBI official stated, “After the searches, the CBI confiscated crucial incriminating evidence and virtual digital assets, shedding light on the scale of the cryptocurrency fraud. The seized materials are expected to lead investigators to those responsible for the alleged fund misappropriation and international transactions.
In December 2023, the Supreme Court instructed the CBI to assume control of the cases related to the alleged fraud. Authorities filed multiple cases nationwide, including in Maharashtra, Jammu and Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, and Karnataka, accusing individuals of large-scale fraud and money laundering. Since taking over the cases, the agency has been conducting an in-depth investigation to uncover the full scale of the fraud, identify all involved parties, and track the misappropriated funds, including international transactions, according to the official.
Investigation into the GainBitcoin Multi-Level Marketing Scam
The CBI stated that GainBitcoin was a multi-level marketing scheme started in 2015 by entrepreneurs Amit Bhardwaj (deceased) and Ajay Bhardwaj, along with their network of agents. The company Variable Tech Pte Ltd operates the scheme through multiple websites. It allegedly enticed investors with promises of 10% monthly returns in Bitcoin for 18 months. The scheme encouraged prospective investors to buy cryptocurrency from exchanges and invest it with GainBitcoin through cloud mining contracts. The scheme followed a multi-level marketing structure, commonly associated with pyramid-style Ponzi schemes, where payouts relied on recruiting new investors.
Also Read: PM Modi Calls Maha Kumbh ‘Yagya of Unity,’ Praises Yogi Govt