Cracking Down on Cryptocurrency: CBI's Nationwide Raids Expose Rs 6,600 Crore Ponzi Scheme

The CBI is probing the Rs 6,600 crore GainBitcoin scam orchestrated by Amit Bhardwaj and his brother. Raids at 60 sites across India targeted key individuals involved. The operation used MLM tactics to promise high returns on Bitcoin, later switching to less valuable MCAP. Numerous FIRs have been registered.

On Tuesday, the CBI conducted coordinated raids at 60 locations nationwide as part of an investigation into the Rs 6,600 crore GainBitcoin cryptocurrency scam, according to officials. These raids spanned several cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru, targeting locations linked to the main accused, a CBI spokesperson announced.

Amit Bhardwaj, who is now deceased, and his brother Ajay Bhardwaj, allegedly masterminded the ponzi scheme using platforms like www.gainbitcoin.com. Launched in 2015, the fraudulent operation posed as Variabletech Pte. Ltd, enticing investors with offers of ten percent monthly Bitcoin returns over 18 months through 'cloud mining' contracts, of which the CBI highlighted its MLM structure, likened to pyramid schemes. Initially, payouts in Bitcoin fostered the illusion of a profitable enterprise, but the scheme faltered as fresh investments dwindled by 2017. Attempts to cover losses included switching payouts to their own less-valued cryptocurrency, MCAP.

The scam’s vast scale led to multiple FIRs filed across regions from Jammu and Kashmir to Maharashtra, prompting the Supreme Court to assign the investigation to the CBI due to its complexity and international ties. The CBI aims to fully uncover the fraud, identify accused parties, and trace the misappropriated funds, including international transactions. Recent searches have led to the seizure of a few crypto wallets, digital evidence, and devices. Emails and cloud data were also confiscated.