The Central Bureau of Investigation (CBI), India’s domestic crime investigating agency, conducted searches in over 60 locations in relation to an eight-year-old Bitcoin (BTC) Ponzi scam investigation involving 6,606 crores Indian rupees ($75.8 million).
On Feb. 25, the CBI announced raids across major Indian cities. Authorities conducted search operations in Delhi, Bengaluru, Pune and Nanded, among other cities, on properties tied to key suspects in the case.
Chasing behind an unforgettable past
The GainBitcoin scam was orchestrated by the Bhardwaj Brothers — the infamous Bitcoin evangelist Amit Bhardwaj and his brother, Vivek Bhardwaj. The duo was accused of scamming about 8,000 investors through GainBitcoin, an investment scheme with a cloud-based platform for Bitcoin trading and mining established in 2013. 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.”
The brothers were arrested in 2017 following multiple First Information Report filings with the police authorities. According to the reports, Amit Bhardwaj was the mastermind behind GainBitcoin, while his brother was the main “conspirator” responsible for promoting and marketing the scams at crypto events.
Related: Bitcoin Mining Boss Bhardwaj Carries On Despite Arrest Petition
Indian authorities to continue investigations
To date, eight individuals have been arrested in connection with the GainBitcoin scam. Amit passed away in January 2022 after suffering a cardiac arrest while on bail.
Police Commissioner Rashmi Shukla said the Bhardwaj brothers had taken advantage of a lack of crypto knowledge. The duo would often collect funds for Bitcoin purchases and instead buy equal amounts of Ether (ETH) and Mcap (MCAP) tokens on behalf of users, pocketing the difference.
The CBI reaffirmed its commitment to continue conducting a thorough investigation until all perpetrators of the “massive cryptocurrency fraud” are brought to justice.
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