CBI Raids 60 Locations Across India in Crackdown on GainBitcoin Crypto Scam
CBI raids 60 locations across India in a major crackdown on the multi-billion rupee GainBitcoin crypto scam
CBI – Crypto Scam – GainBitcoin Crypto Scam – Locations Across India in Crackdown – taxsan
CBI – Crypto Scam – GainBitcoin Crypto Scam – Locations Across India in Crackdown – taxsan
The Central Bureau of Investigation (CBI) has launched extensive search operations at over 60 locations across India as part of its probe into the GainBitcoin cryptocurrency scam, according to an official press release.
The large-scale raids are being conducted in Delhi-NCR, Pune, Chandigarh, Nanded, Kolhapur, Bengaluru, and several other cities. The targeted premises are linked to the key accused, their associates, and entities suspected of laundering proceeds from the scam. During the searches, CBI officials seized cryptocurrency wallets, digital devices, and incriminating evidence, including crucial data from emails and cloud storage systems.
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GainBitcoin was a Ponzi scheme launched in 2015 by Amit Bhardwaj (now deceased), Ajay Bhardwaj, and a network of agents. Operating under the facade of Variabletech Pte. Ltd., the scheme used multiple websites to lure investors with promises of a 10% monthly return in Bitcoin for 18 months.
Investors were encouraged to purchase Bitcoin from exchanges and invest in GainBitcoin’s cloud mining contracts. The scheme followed a multi-level marketing (MLM) model, often associated with pyramid schemes, where existing investors were paid using funds from new recruits rather than legitimate profits.
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Initially, the scheme delivered payouts in Bitcoin, making it appear credible. However, by 2017, fresh investments slowed down, exposing the scheme’s unsustainable nature. In a desperate attempt to keep it afloat, GainBitcoin abruptly replaced Bitcoin payouts with MCAP, an in-house cryptocurrency that held significantly lower value, further defrauding investors.
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As investors realized they had been misled, multiple FIRs were registered across India in states including Jammu & Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra. The sheer scale of the fraud led the Supreme Court to transfer all cases to the CBI for a unified investigation.
With the latest raids, authorities aim to track down remaining assets, identify hidden funds, and bring all perpetrators to justice. The CBI, along with financial crime agencies, is intensifying its crackdown on cryptocurrency-based scams, highlighting the risks of investing in unregulated crypto schemes.
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