India's CBI Arrests Key Figure in GainBitcoin Fraud Investigation

India's Central Bureau of Investigation (CBI) has apprehended Ayush Varshney, co-founder and chief technology officer of Darwin Labs Private Limited, in relation to the ongoing GainBitcoin cryptocurrency fraud probe. According to Cointelegraph, Varshney was detained at Mumbai airport on Monday while attempting to leave India, following a Look Out Circular issued against him. He was officially arrested and handed over to the CBI on Tuesday. The CBI has identified Darwin Labs as a pivotal player in constructing the technological framework for the alleged scheme, including the GainBitcoin investor platform and related tools for managing payments and wallets. This arrest marks the latest advancement in India's investigation into the multi-million-dollar GainBitcoin operation, one of the country's largest alleged cryptocurrency investment frauds. The GainBitcoin scheme, as per the CBI, was promoted through Variabletech Pte. Ltd., promising investors monthly returns of approximately 10% in Bitcoin (BTC) for up to 18 months. The funds collected from investors were reportedly misappropriated. Darwin Labs and its co-founders, including Varshney, Sahil Baghla, and Nikunj Jain, were involved in the creation and deployment of a cryptocurrency token known as MCAP, along with its associated ERC-20 smart contract. The CBI further stated that the company contributed to developing essential components of the platform's technical infrastructure, including the GBMiners.com mining pool, a Bitcoin payment gateway, the Coin Bank Bitcoin wallet, and the GainBitcoin investor website used for participant interaction. The decade-old case reportedly involved 8,000 investors and losses estimated at around $790 million. GainBitcoin emerged in the mid-2010s as a cloud-mining investment platform, encouraging users to purchase Bitcoin and deposit it with the service in exchange for promised fixed returns. The CBI alleged that the scheme eventually relied on a multi-level marketing structure, where payouts were linked to recruiting new investors. As new deposits dwindled, the platform reportedly shifted payouts from Bitcoin to its in-house MCAP token, which had a significantly lower value. The operation was allegedly masterminded by Amit Bhardwaj, a notable early Bitcoin promoter in India, who passed away in 2022 while out on bail. On February 26, 2025, Indian authorities conducted searches at over 60 locations as part of the investigation into the GainBitcoin scheme. Investigators have previously indicated that the case involves 8,000 investors, with estimated losses reported by authorities ranging from about 6,606 crore Indian rupees (roughly $790 million).