India’s CBI Raids 60 Locations in Crackdown on GainBitcoin Scam

The Central Bureau of Investigation (CBI) of India has performed at 60 locations throughout the country, also in cities such as Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur and Bengaluru, as part of his research into the $ 800 million (£ 6,600 crore) gainbitcoin scam.

Launched in 2015 by Amit Bhardwaj (who died in 2022) and his brother Ajay Bhardwaj, Gainbitcoin, who operated under Varievetech PTE. Ltd., promised investors lucrative return of 10% monthly in Bitcoin (BTC) via “Cloud mining contracts.”

“CBI took over these things and carried out an omnibus and an extensive investigation to discover the full extent of the fraud, to identify all accused parties and to trace the darkened funds, including international transactions,” said the agency in a Tuesday rack.

During the raids, the CBI has seized in a burdensome digital evidence, including crypto portfolios, e -mails and cloud data, crucial for tracing the funds -some of which are reportedly washed across international boundaries.

Spend against DecryptSudhakar Lakshmanaraja, founder of the Blockchain Education Platform Digital South Trust, noted about the urgent need for stronger regulations and investment protection in the crypto industry of India.

“Despite the investigation of the regulations, MLM -based scams continue to thrive by exploiting mesh and public ignorance,” Lakshmanaraja added.

The fraudulent operation of the Gainbitcoin SCAM had a multi-level marketing (MLM) structure, a type of pyramid scheme where participants earn committees, not only for their direct sale, but also from the sale of their recruits.

Initially, investors were paid in Bitcoin, but when the schedule collapsed in 2017, Gainbitcoin switched to an internal crypto called MCAP, who had much less value.

This movement left many investors worthless digital currency instead of the promised bitcoin.

The investigation took a big turn in March 2022 when the Indian Supreme Court intervene In the case, ordering Ajay Bhardwaj to announce the details of the Crypto wallet of his deceased brother.

The decision of the court, who followed Ajay Bhardwaj’s appeal to have the case rejected, said that the username and the password were crucial to understand the scale of the fraud and to trace the proceeds.

The CBI has now consolidated several FIRs that are registered in different states, including Jammu & Kashmir, Punjab, Delhi, West Bengal, Karnataka and Maharashtra, in one study.

India increases crypto enforcement

The research into Gainbitcoin is part of a trend of increased enforcement and regulatory action within the Crypto Ecosystem of India.

Last week the police of Mumbai Ravi Mahaseth, the director of Coin ZX, booked an Indian Crypto trading platform, for alleged cheaters of $ 23 million (RS 200 CRORE).

The police campaign follows a series of complaints tabled against Coin ZX, who is reportedly promised the return on Bitcoin investments, only for investors to see the payments stop after a few months.

The Indian Enforcement Directorate (ED) has that too launched A harsh action against crypto fraud, performing searches in Delhi, Jaipur and Mumbai as part of an investigation into an alleged scam with $ 72 million (£ 600 crore) in illegal crypto conversions.

The operation is linked to Chirag Tomar, an Indian national currently Sit out for a prison In the US for cheating investors of more than $ 20 million.

Tomar’s schedule included the spoofing of the Crypto Exchange website CoinbaseStealing user references and transferring the stolen funds to portfolios under his control.

“This probe reflects the government’s dedication to tackle crypto fraud, which demonstrates responsibility and investor protection,” Vedang Vatsa said, founder of the global crypto -community hashtag web3, said Decrypt. Vatsa added that the probe “emphasizes the need for balanced regulations to guarantee a safe environment and to promote innovation in the digital assets eco system of India.”