In India, the Central Bureau of Investigation (CBI) is conducting searches at over 60 locations across India as part of its probe into the GainBitcoin scam.
Raids are taking place in cities across India including Delhi NCR, Pune, Chandigarh, Bengaluru, and others, targeting those involved in fraud and money laundering. The operation’s goal is to reveal the full scope of the scam and trace the misappropriated funds.
GainBitcoin was a Ponzi scheme founded in 2015 by Amit Bhardwaj (dead) and his brother Ajay Bhardwaj. It was promoted on various websites, including www.gainbitcoin.com, and purported to be operated by Variabletech Pte. Ltd. It offered 10% monthly Bitcoin returns over 18 months using “cloud mining” contracts.
The scheme used an MLM (multi-level marketing) concept, with compensation based on bringing in new investors. Initially, investors got Bitcoin, but as the plan began to fail in 2017, payments were moved to an in-house cryptocurrency known as MCAP. This token had little to no value, causing huge losses for investors.
As multiple FIRs were registered across several states, the Supreme Court of India sent the cases to the CBI for a thorough investigation. The agency is currently monitoring the stolen monies, including foreign transfers, and identifying everyone involved.
During the searches, the CBI seized cryptocurrency wallets, damning digital data, and email records kept on cloud platforms. The bureau has stated that the inquiry would continue until all criminals are brought to justice.
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