CBI Conducts Nationwide Raids In Bitcoin Ponzi Scheme Investigation

According to Cointelegraph, the Central Bureau of Investigation (CBI), India's primary crime investigation agency, has launched a series of searches across more than 60 locations in connection with an eight-year-old Bitcoin Ponzi scheme. This investigation involves a staggering 6,606 crores Indian rupees, equivalent to $75.8 million. On February 25, the CBI announced a nationwide operation targeting major Indian cities, including Delhi, Bengaluru, Pune, and Nanded. These searches focus on properties linked to key suspects in the GainBitcoin cryptocurrency scam. The GainBitcoin scam, masterminded by the Bhardwaj Brothers, Amit and Vivek, was a notorious scheme that defrauded approximately 8,000 investors. Established in 2013, GainBitcoin was marketed as a cloud-based platform for Bitcoin trading and mining. The fraudulent operation promised investors lucrative returns of 10% monthly in Bitcoin over 18 months. Investors were encouraged to purchase Bitcoin from exchanges and invest them with GainBitcoin through "cloud mining" contracts. The brothers were apprehended in 2017 after multiple First Information Reports (FIRs) were filed, with at least 27 cases reported to the police. Amit Bhardwaj was identified as the mastermind, while Vivek was labeled the main conspirator, responsible for promoting and marketing the scam at various cryptocurrency events. To date, eight individuals have been arrested in connection with the GainBitcoin scam. However, Amit Bhardwaj passed away in January 2022 due to cardiac arrest while on bail. Police Commissioner Rashmi Shukla highlighted that the Bhardwaj brothers exploited the general lack of knowledge about cryptocurrencies. They would collect funds for Bitcoin purchases but instead buy equivalent amounts of Ether (ETH) and Mcap (MCAP) tokens, profiting from the difference. The CBI has reiterated its commitment to thoroughly investigate this massive cryptocurrency fraud and ensure that all perpetrators are brought to justice.