The CBI arrested Ayush Varshney on March 10 in connection with the high-profile GainBitcoin cryptocurrency fraud case.
While granting bail, the court observed that while the gravity of the offences is a factor, the object of bail is neither punitive nor preventive but to secure the presence of the accused at trial.
The court took into consideration the lack of evidence, the delayed arrest and his consistent appearance before the ED.
Case of Ayush Varshney and multi-crore crypto fraud
The case investigated by the CBI involved the “Gain Bitcoin” ponzi scheme orchestrated by Variabletech Pte Ltd. The prosecution alleged that the accused Ayush Varshney conspired to induce thousands of investors with promises of 10 per cent monthly returns in Bitcoin.
However, instead of returning investments, the accused repeatedly provided investors with 100,000,000 MCAP tokens, which were described as “worthless” and launched merely as a mechanism to dupe investors and avoid bitcoin return obligations.
It is further revealed in the investigation of the case that in or around early 2017, the accused persons carried out extensive promotional campaigns, including front-page advertisements in national newspapers, online media publications, promotional videos and social media platforms, representing that a public Initial Coin Offering (ICO) was being conducted.
According to officials, Varshney had been absconding for several months, prompting the issuance of a Look Out Circular (LOC) against him. On March 9, 2026, immigration authorities at Mumbai airport intercepted him while he was attempting to leave the country. He was subsequently handed over to the CBI and formally arrested on March 10.
Who is Ayush Varshney?
According to the bail plea filed by advocate Dhruv Gupta, the petitioner, Ayush Varshney, is an alumnus of the Indian Institute of Technology (IIT), Kanpur and is a highly accomplished technology professional with a distinguished track record in the start-up ecosystem, having completed his graduation in Bachelor of Technology (Electrical Engineering) in the year 2014, from IIT Kanpur.
He has been an All-India Topper in Science Olympiad, Cyber Olympiad and a recipient of various scholarships. The Applicant has been associated with several reputed technology ventures in key roles, including his present association with Grexa Al, and prior associations with Bluegape, Nash Ventures and Testbook, where he held a leadership role and contributed significantly to product development and technological growth.
The petitioner has also been recognised ecosystem, including a category in 2018, a promising feature highlighting young, prestigious emerging innovator, “Forbes leaders under 30 ” in the 30 start-ups under technology 30″ and entrepreneurship.
It was submitted that the petitioner has consistently worked in the domain of software engineering, product development and innovation.
CBI’s arguments against bail
The CBI contended that Darwin Labs, under Varshney’s technical leadership, was responsible for the design, development, and deployment of the MCAP token and the GBminers mining pool.
While opposing the bail plea, the CBI labelled Varshney the “technical brain” behind the scam, and submitted that the case involves electronic evidence which is inherently fragile and highly susceptible to tampering, and the accused, being technically proficient, possesses the capability to manipulate or destroy digital evidence in a manner that may not leave any traceable link.
“During the period of police custody, the accused did not cooperate with the investigation and deliberately withheld vital information, including details regarding the whereabouts of co-accused persons and possible stashes of the defrauded cryptocurrency,” CBI argued.
Ayush Varshney’s stand
Varshney advocate Dhruv Gupta argued that the present matter pertains to the fraud of cryptocurrency by the company, namely Variable Tech Pte Ltd, through the website gainbitcoin.com, and the said website belongs to the accused Amit Bhardwaj, who had already expired in the year 2022.
It has been further argued that the only role of the accused in the present case is that the accused/applicant had developed a crypto Bitcoin Mining Pool, namely ‘G B Miners’ software for the main accused Amit Bhardwaj.
It has been further argued that, as per the allegations, the accused/applicant had developed ‘G B Miners’, M Cap Crypto Currency, one platform, i.e. Bitcoin Growth Fund and Coin Bank E wallet
Court’s findings
The order noted that the accused/applicant had joined five times the investigation being conducted by ED in the connected case and did not evade the proceedings being conducted by ED, which shows that the accused had no intention to abscond.
While granting the bail, the court remarked that perusal of the record also reveals that accused Amit Bhardwaj was doing the crypto trading or getting the investment from the investors through gainbitcoin.com even before 2016, i.e. before the development of Mining Pool Software App. by M/s Darwin Labs Pvt. Ltd., including the accused/applicant.
The court remarked that if Varshney had intended to tamper with evidence, he had “ample time of nine years” to do so before his arrest
The Delhi Court was dealing with a bail plea of Ayush Varshney in crypto fraud case. (Image generated using AI) 
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