Summary: India’s Central Bureau of Investigation (CBI) is conducting massive raids in various cities to unmask the whole magnitude of GainBitcoin scam. The raid is for tracking robbed money and putting the culprits in the dock.
The CBI is raiding more than 60 locations in India as part of its probe into the GainBitcoin scam, a Ponzi scam that defrauded thousands of investors. Raids are being carried out in major cities like Delhi NCR, Pune, Chandigarh, and Bengaluru against those who have indulged in financial fraud and money laundering.
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GainBitcoin was founded 10 years ago by Amit Bhardwaj, who has since passed away, and his brother Ajay Bhardwaj. It lured investors with promises of 10% monthly Bitcoin returns through so-called cloud mining contracts. The scheme followed a multi-level marketing (MLM) model, where payouts relied on recruiting new investors. Initially, participants received Bitcoin, but as the operation began to collapse 8 years ago, payouts were switched to an in-house cryptocurrency called MCAP, which had little to no value, leaving investors with heavy losses.
As multiple fraud cases piled up across different states, the Supreme Court of India directed the CBI to investigate. The agency is now working to trace the stolen funds, including those transferred overseas, and identify everyone involved.
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During the searches, investigators seized cryptocurrency wallets, critical digital evidence, and email records stored on cloud platforms. The CBI has stated that the investigation will continue until all those responsible are brought to justice.
