The GainBitcoin scheme, launched in 2015 by Amit Bhardwaj and his associates, promised investors a too-good-to-be-true 10% monthly return on Bitcoin investments. Classic Ponzi playbook.
Initially paying investors in Bitcoin, they later switched to their less valuable in-house MCAP token in 2017. Surprise, surprise.
The scale of the fraud is staggering – an estimated ₹6,600 crore ($758 million) swindled from investors across multiple Indian states. The operation functioned as a multi-level marketing structure, heavily promoted on social media with transactions exceeding ₹350 crore. Big numbers, bigger lies.
CBI registered FIRs in August 2024 after the Supreme Court ordered them to take over the case. The CBI raids targeted 60 locations across major cities including Delhi NCR, Bengaluru, Pune, and Chandigarh. The Enforcement Directorate (ED) is separately investigating the money laundering angle, tracing transactions through crypto wallets, exchanges, and bank accounts.
The case has international connections, linked to a US-based fraud by Indian national Chirag Tomar. He was sentenced in the US for a $20 million crypto fraud involving spoofed websites mimicking legitimate exchanges. The scammers used fake customer support numbers to extract sensitive information from victims. Crypto scammers – they’re everywhere.
The crackdown highlights India’s need for stricter cryptocurrency regulations and could trigger enhanced KYC and AML measures. Unlike legitimate cryptocurrencies that utilize complex cryptographic techniques to secure transactions, these schemes exploit the technology for fraudulent purposes. Investor confidence? Shaken, not stirred.
CBI is continuing its investigation into the broader network with more seizures and legal actions expected. Authorities are tracking international financial transactions and focusing on recovering misappropriated funds.
The hunt for the missing millions continues, and more arrests could be coming. Buckle up.
