CBI Raids 60+ Locations Nationwide in Major GainBitcoin Cryptocurrency Scam Probe
(Judicial Quest News Network)
The Central Bureau of Investigation (CBI) is conducting sweeping raids at over 60 locations across India as part of its ongoing investigation into the notorious GainBitcoin cryptocurrency scam. These coordinated searches span major cities such as Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, Bengaluru, and more, targeting properties linked to key accused individuals, their associates, and entities allegedly involved in laundering the proceeds of crime.
Background of the GainBitcoin Scam
Launched in 2015 by Amit Bhardwaj (now deceased) and Ajay Bhardwaj, GainBitcoin was a fraudulent Ponzi scheme disguised as a cryptocurrency investment opportunity. Operating through websites like www.gainbitcoin.com and under the guise of a company named Variabletech Pte. Ltd., the scheme promised investors monthly returns of 10% in Bitcoin over an 18-month period.
Investors were urged to purchase Bitcoin and invest them with GainBitcoin under “cloud mining” contracts, which followed a multi-level marketing (MLM) structure similar to pyramid schemes. The early payouts in Bitcoin encouraged more investment, but as new investments slowed by 2017, the scheme began to unravel. In an attempt to cover the losses, GainBitcoin switched payouts to its own low-value cryptocurrency, MCAP, further deceiving investors.
Massive Scale and Ongoing Investigation
With the scale of the fraud growing, multiple FIRs were filed across India, including in Jammu & Kashmir, Punjab, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra. In light of the vast scope of the scam, the Hon’ble Supreme Court of India transferred the cases to the CBI for a comprehensive investigation.
The CBI is leaving no stone unturned in uncovering the full extent of the fraud, tracking misappropriated funds, and investigating international transactions. During the raids, CBI officials have seized crypto wallets, incriminating digital evidence, and various electronic devices. Additional evidence, including crucial data from emails and cloud storage, has also been confiscated.
The CBI remains committed to ensuring justice is served and will continue its exhaustive investigation into this massive cryptocurrency scam.
