CBI Cracks Down on Gainbitcoin Scam in India, Seizing $2.75M in Cryptocurrency

In the strongest-ever move to uncover the infamous Gainbitcoin scam – allegedly orchestrated by Amit Bhardwaj (deceased) and Ajay Bhardwaj, the Central Bureau of Investigation, the central investigation agency of India, has conducted raids in at least 60 locations across the country and seized cryptos valued at approximately $2.75 million. Curious to know more details? Read on? 

CBI Seizes $2.75 M in Cryptos in Nationwide Raids 

In a press release, the CBI acknowledges the rumours that it has conducted raids in nearly 60 locations across India in connection with the infamous Gainbitcoin scam case – which was transferred to them for a detailed investigation by the top court of the country, the Supreme Court of India, after the registration of multiple First Information Reports across states in connection with the scam.   

Reports suggest that the raids have been conducted in several major cities, including Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi and Hubli. 

As per reports, several important pieces of evidence, including 121 documents, 34 laptops and hard disks, 12 mobile phones and several email and instant messaging data dumps, have been seized during the raids. 

The press release of the CBI confirms the reports that several crucial documents and electronic devices have been seized during the raid.

Importantly, reports state that the central agency has seized cryptocurrencies worth no less than $2.75 million during the raids. 

Gainbitcoin Scam: How It Defrauded Investors 

It was in 2015 that the infamous Gainbitcoin Ponzi scheme was launched. As mentioned above, it was alleged that Amit Bharadwaj (deceased) and Ajay Bhradwaj played a crucial role in orchestrating this fraud scheme.

Like every successful Ponzi scheme, the Gainbitcoin scheme also attracted people with a massive monthly return. It promised investors a striking monthly return of 10% on BTC investments for 18 months. 

Initially, everything worked smoothly. Naturally, it helped the scammers attract more victims. Its multi-level marketing model complemented its growth and expansion significantly. 

The collapse commenced when withdrawals were suspiciously switched to an in-house cryptocurrency, MCAP. 

In 2018, Amit Bharadwaj and his team, including Ajay Bhradwaj, Nikunj Jain and Sahil Baghla, were booked in connection with the scam, and produced before a special court. 

Multiple FIRs were registered across the country in connection with the scam in a very short span of time. Considering the severity and nature of the crime, the Supreme Court directed the CBI to launch a detailed investigation into this matter.