India CBI Raids 60+ Locations in Connection with $75.8M Bitcoin Ponzi Scheme

India CBI Raids 60+ Locations in Connection with $75.8M Bitcoin Ponzi Scheme

India’s premier crime investigation agency, the Central Bureau of Investigation (CBI), has conducted searches across more than 60 locations as part of an ongoing probe into a massive Bitcoin Ponzi scheme dating back eight years. The scam, valued at ₹6,606 crore ($75.8 million), was orchestrated through the now-infamous GainBitcoin platform.

Nationwide Raids Target Key Suspects

On February 25, the CBI launched a series of raids in major cities, including Delhi, Bengaluru, Pune, and Nanded, targeting properties linked to individuals involved in the fraud. The operation marks a significant step in the agency’s relentless pursuit of justice for victims of one of India’s largest cryptocurrency scams.

The Rise and Fall of GainBitcoin

The GainBitcoin Ponzi scheme was masterminded by the Bhardwaj brothers—Amit Bhardwaj, a well-known Bitcoin advocate, and his brother Vivek Bhardwaj. Launched in 2013, the scheme lured investors with the promise of 10% monthly returns in Bitcoin for 18 months under the guise of cloud mining contracts.

According to the CBI:

“The fraudulent scheme lured investors by promising lucrative returns of 10% monthly in Bitcoin for 18 months. Investors were encouraged to purchase Bitcoin from exchanges and invest them with GainBitcoin through ‘cloud mining’ contracts.”

However, rather than delivering on their promises, the Bhardwaj brothers allegedly misused investor funds. Reports indicate that around 8,000 investors fell victim to the scheme before law enforcement stepped in.

Crackdown on the Conspirators

The duo was arrested in 2017 following multiple First Information Reports (FIRs) filed by defrauded investors. Authorities identified Amit Bhardwaj as the scheme’s mastermind, while Vivek Bhardwaj played a crucial role in marketing and promoting the scam through crypto-related events.

Sadly, Amit Bhardwaj passed away in January 2022 due to cardiac arrest while out on bail. Since the crackdown began, at least eight individuals have been arrested in connection with the case.

Exploiting a Lack of Crypto Awareness

According to Police Commissioner Rashmi Shukla, the Bhardwaj brothers took advantage of India’s limited crypto awareness at the time. Instead of purchasing Bitcoin for investors as promised, they allegedly redirected funds to acquire Ether (ETH) and Mcap (MCAP) tokens, pocketing the price difference for personal gain.

CBI’s Commitment to Justice

Despite the passage of time, Indian authorities remain determined to hold all perpetrators accountable. The CBI has reaffirmed its commitment to fully investigate the case and ensure that justice is served for the thousands of victims affected by this landmark cryptocurrency fraud.