The Central Bureau of Investigation (CBI) of India conducted nationwide raids to crack down on the GainBitcoin scam involving an amount of 660 billion rupees.
• The planner Amit Bhardwaj’s scheme promised high returns in Bitcoin.
• Investors were misled by the low-value MCAP cryptocurrency expenditures.
The Central Bureau of Investigation (CBI) has launched large-scale raids at 60 locations in India targeting individuals and entities related to the 660 billion rupee GainBitcoin cryptocurrency scam.
This coordinated action covered major cities including the National Capital Territory of Delhi, Pune, Chandigarh, Nagpur, Kolhapur, and Bangalore, focusing on locations associated with the main defendants, their accomplices, and entities suspected of money laundering.
Expose the GainBitcoin Ponzi scheme. GainBitcoin was launched in 2015 by Amit Bhardwaj (now deceased) and his brother Ajay Bhardwaj, operating under the name Variabletech Pte. Ltd.
The scheme attracted investors with promises of excessive returns—earning 10% in Bitcoin every month for 18 months. Participants were encouraged to purchase Bitcoin from external exchanges and invest through 'cloud mining' contracts offered by GainBitcoin.
The operation follows a multi-level marketing (MLM) structure, where returns heavily depend on recruiting new investors, a hallmark of pyramid schemes. Transitioning to MCAP and deceiving investors, in the initial stages, the scheme paid in Bitcoin, creating an illusion of profitability.
However, as new investments declined in 2017, the sustainability of the business began to waver. To mitigate the impending collapse, GainBitcoin unilaterally shifted expenditures to its internal cryptocurrency MCAP, which was valued far below Bitcoin.
This strategic move further misled and harmed the interests of investors, exacerbating their financial losses. Latest news: 🇮🇳 CBI is conducting searches at over 60 locations in India, with legal proceedings and ongoing investigations. The scale and complexity of the scam have led multiple states (including Jammu and Kashmir, Punjab, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra) to issue several preliminary information reports (FIRs).
Given the national and international impact of the scam, the Supreme Court has transferred the investigation to the Central Bureau of Investigation. The agency is committed to conducting a thorough and fair investigation to uncover the full extent of the fraud, identify all parties involved, and trace the misappropriated funds, including those transferred through international channels.
Recent raid actions seized multiple crypto wallets, substantial digital evidence, and electronic devices. The efforts of the Central Bureau of Investigation highlight its determination to bring the perpetrators of this massive cryptocurrency fraud to justice.
