Stay updated with the latest - Click here to follow us on Instagram
Journalism of Courage
This is an archive article published on February 26, 2025
GainBitcoin scam: CBI seizes cryptocurrencies worth Rs 23 crore
CBI officials said they seized cryptocurrencies valued at Rs 23.94 crore, electronic devices and other incriminating documents during the searches.
“Cryptocurrencies worth Rs 23.94 crore were seized, along with multiple hardware crypto wallets, 121 incriminating documents, 34 laptops and hard disks, 12 mobile phones, and multiple email and instant messaging app dumps,” a CBI official said.
The Central Bureau of Investigation (CBI) conducted searches at over 60 locations across the country including Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi, and Hubballi over the last two days in connection with its probe in the GainBitcoin scam, the central agency said Wednesday.
CBI officials said they seized cryptocurrencies valued at Rs 23.94 crore, electronic devices and other incriminating documents during the searches.
“Cryptocurrencies worth Rs 23.94 crore were seized, along with multiple hardware crypto wallets, 121 incriminating documents, 34 laptops and hard disks, 12 mobile phones, and multiple email and instant messaging app dumps,” a CBI official said.
The agency said that 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 CBI is investigating a Ponzi scheme, GainBitcoin , launched by the late Amit Bhardwaj and Ajay Bhardwaj in 2015 which promised investors 10 per cent monthly returns on Bitcoin investments for 18 months.
“Investors were encouraged to purchase Bitcoin from exchanges and invest them with GainBitcoin through ‘cloud mining’ contracts. The model followed a multi-level marketing (MLM) structure, commonly associated with pyramid-structured Ponzi schemes, where payouts were dependent on bringing in new investors,” an official said.
Initial payouts were made in Bitcoin but as the scheme collapsed in 2017, payouts were switched to an in-house cryptocurrency, MCAP, which had significantly lower value, further defrauding investors, the CBI officials said.
Story continues below this ad
The investors then started approaching the police after which FIRs were registered in various states, including Jammu & Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra, alleging large-scale fraud and money laundering. The investigation was later transferred to the CBI by the Supreme Court.
© The Indian Express Pvt Ltd
Advertisement
Loading Recommendations...
Advertisement
Live Blog
Advertisement