The Central Bureau of Investigation (CBI) has seized cryptocurrencies worth Rs 23.94 crore following two-day searches at more than 60 locations across five states
The Central Bureau of Investigation (CBI) has seized cryptocurrencies valued at Rs 23.94 crore following two-day searches at more than 60 locations across five states in connection with the Rs 6,600-crore GainBitcoin scam case, officials said on Wednesday.
The searches were carried out on February 25 and 26 across more than 60 locations in Delhi, Mumbai, Pune, Nanded, Kolhapur, Bengaluru, Chandigarh, Mohali, Jhansi, and Hubli, among other cities. The agency’s probe into the case began after the Supreme Court handed over the investigation to the CBI due to the expansive nature of the operation and the international ramifications it entailed.
The CBI spokesperson said that the agency has seized significant incriminating evidence and virtual digital assets, further unravelling the extent of the cryptocurrency fraud.
During the searches, the CBI seized multiple hardware crypto wallets, 121 documents, 34 laptops and hard disks, 12 mobile phones, and data dumps from email and instant messaging apps, which are now being analysed to trace misappropriated funds and identify any potential international financial transactions.
The GainBitcoin scheme, launched in 2015 by late Amit Bhardwaj, along with his brother Ajay Bhardwaj and other associates, operated as a Ponzi scheme promising investors a 10 per cent monthly return on Bitcoin investments for 18 months.
The scheme functioned under a multi-level marketing structure, attracting more investors by offering lucrative commissions for referrals. Initially, payouts were made in Bitcoin, but as the scam began to collapse in 2017, investors were instead compensated with an in-house cryptocurrency called MCAP, which had significantly lower value.
The transition further defrauded investors, leading to massive financial losses.
The case is also being investigated by the Enforcement Directorate (ED), which has previously attached assets worth crores and arrested multiple individuals, including family members and associates of Amit Bhardwaj.
