February 26th 2025.
The Central Bureau of Investigation (CBI) has recently concluded a two-day search operation across the country in connection with the GainBitcoin scam case. The agency has seized cryptocurrencies worth over Rs 23.94 crore, along with other crucial evidence, such as hardware crypto wallets, documents, laptops, mobile phones, and digital messaging application dumps. According to a spokesperson, the nationwide search, which took place on February 25th and 26th, has revealed significant evidence of the elaborate cryptocurrency fraud.
The seized electronic devices have been sent for forensic analysis to uncover any further details regarding the misappropriation of funds and potential international transactions linked to the scam. The CBI conducted the search operation at 60 different locations in cities like Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi, and Hubli. The operation, which was launched on Tuesday, concluded on Wednesday.
The masterminds behind this Ponzi scam are believed to be Amit Bhardwaj and his brother Ajay Bhardwaj. They allegedly operated through a network of platforms, including the main website www.gainbitcoin.com, under the guise of Variable Tech Pvt. Ltd. The scam, which began in 2015, promised investors a 10% monthly return in Bitcoin over a period of 18 months. The investors were asked to purchase the digital currency from external exchanges and deposit it with GainBitcoin through "cloud mining" contracts.
The spokesperson stated that the scam followed a multi-level marketing structure, similar to pyramid schemes, where payouts were dependent on bringing in new investors. In the early stages, investors received payouts in Bitcoin, which created the illusion of a successful and lucrative venture. However, as the influx of new capital dwindled in 2017, the scam began to unravel.
In an attempt to mask their losses, GainBitcoin switched payouts to their in-house cryptocurrency called MCAP, which had significantly less value than Bitcoin. This move further misled the investors. As the scam came to light, multiple FIRs were registered across the country, from Jammu and Kashmir to Maharashtra and from Delhi to West Bengal. The Supreme Court handed over the investigation to the CBI due to the extensive scale and international nature of the scam.
The agency is now conducting a thorough probe to uncover the full extent of the fraudulent activities, identify all parties involved, and trace the misappropriated funds, including those that may have crossed borders. The CBI's in-house capabilities have played a significant role in seizing crucial evidence and virtual digital assets, which have shed light on the magnitude and complexity of this scam.
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