India’s Central Bureau of Investigation (CBI) has seized ₹23.94 crore ($2.88 million) worth of cryptocurrency and other digital assets from the GainBitcoin Scam. The fraudulent scheme, which began in 2013, lured 8,000 investors with false promises of high Bitcoin returns. The scam caused an estimated loss of ₹6,606 crore ($75.8 million).
Massive Raids Across Multiple Cities
On February 25 and 26, the CBI launched search operations in over 60 locations including Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi, and Hubli. These locations are linked to participants in the scam.
The agency seized $2.88 million worth of cryptocurrencies and multiple hardware crypto wallets. They also seized 121 documents, 34 laptops/hard disks, 12 mobile phones, as well as email and instant messaging app data. The seized materials are under forensic analysis to track misappropriation of funds and potential international transactions linked to the scheme.
The CBI India seized 2.3 million worth of cryptocurrencies in GainBitcoin Scam. Source: CBIHow the GainBitcoin Scam Tricked 8,000 Investors
The GainBitcoin scam was created by brothers Amit Bhardwaj and Vivek Bhardwaj. The scheme presented itself as a cloud-based Bitcoin trading and mining platform, promising investors a 10% monthly return in Bitcoin for 18 months.
Investors were asked to buy Bitcoin from exchanges and deposit it into GainBitcoin’s platform. However, instead of generating real profits, the scheme functioned as a classic Ponzi scam, using funds from new investors to pay old ones.
The GainBitcoin scam operated for years before coming under intense scrutiny. Multiple First Information Reports (FIRs) were filed against the Bhardwaj brothers, leading to their arrest in 2017. According to reports, Amit Bhardwaj was the mastermind, while Vivek played a key role in promoting the scheme at crypto events.
Authorities Have Arrested 8 Individual So Far
As of now, Indian authorities have arrested eight individuals in connection to the case. However, Amit Bhardwaj died in January 2022 due to cardiac arrest while out on bail.
According to Police Commissioner Rashmi Shukla, the Bhardwaj brothers took advantage of users’ lack of familiarity with cryptocurrency. Instead of buying Bitcoin as promised, the brothers allegedly purchased Ether and MCAP tokens in equal amounts and kept the price difference as profit.
The CBI has reaffirmed its commitment to investigating all suspects involved in the large-scale financial fraud. Officials have stated that the probe will continue until all perpetrators are brought to justice.
The GainBitcoin case is not the only major crypto fraud under investigation in India. On Feb. 11 and 15, authorities confiscated ₹1,646 crore ($190 million) in cryptocurrency linked to the BitConnect Ponzi scheme.
The Enforcement Directorate (ED), Ahmedabad, seized cash, luxury vehicles, and electronic devices during raids in Gujarat. The BitConnect scam, launched in 2016, promised daily returns of 1% through a crypto lending program but instead diverted funds to personal wallets. The scheme collapsed in 2018, causing $2.4 billion in global losses and affecting 4,000 investors across 95 countries.
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