The Central Bureau of Investigation (CBI) has launched an extensive crackdown on a major cryptocurrency fraud case, conducting raids at 60 locations across India.
The searches targeted individuals and entities linked to the GainBitcoin scam, an alleged Ponzi scheme that defrauded investors by promising unrealistic returns on Bitcoin investments.
According to officials, the raids took place in several cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru. The investigation focuses on tracing the misappropriated funds, identifying those involved, and uncovering international financial transactions related to the scam.
GainBitcoin, founded in 2015 by the late Amit Bhardwaj, along with his brother Ajay Bhardwaj and a network of agents, lured investors with a scheme that promised 10 per cent returns in Bitcoin over 18 months.
Initially, investors received payouts in Bitcoin, but in 2017, the company introduced MCAP, an in-house cryptocurrency of lesser value. This switch misled investors, leading to significant losses.
CBI has taken over the case and is conducting a comprehensive investigation to determine the scale of the fraud. Officials confirmed that during the searches, several crypto wallets, digital devices, and other incriminating evidence were seized.
The agency aims to dismantle the network behind the scam and recover the siphoned funds.
The crackdown follows action taken by the Enforcement Directorate (ED), which recently froze bank deposits worth over ₹2 crore in connection with cryptocurrency-related frauds.
ED had conducted searches in Mumbai, Delhi, and Jaipur under the Foreign Exchange Management Act (FEMA) after an Indian national, Chirag Tomar, was accused of laundering nearly ₹600 crore through various crypto exchanges.
Tomar, who was sentenced to prison by a US court in November last year, allegedly operated fraudulent websites mimicking cryptocurrency exchange platforms.
Victims were tricked into entering their login credentials, which scammers then used to gain access to their accounts. The stolen cryptocurrency was transferred to wallets controlled by the fraudsters and later sold on platforms such as LocalBitcoins.
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