CBI Raids Unveil Gainbitcoin Scam: $2.75M in Crypto Seized

The Central Bureau of Investigation (CBI), India's central investigation agency, has launched a major crackdown on the Gainbitcoin scam, conducting raids at over 60 locations across the country. The operation resulted in the seizure of cryptocurrencies valued at approximately $2.75 million.

The CBI confirmed the raids, which took place in several major cities, including Delhi, Pune, Nanded, Kolhapur, Mumbai, Bengaluru, Chandigarh, Mohali, Jhansi, and Hubli. During the raids, the agency seized crucial evidence, including 121 documents, 34 laptops and hard disks, 12 mobile phones, and email and instant messaging data dumps.

The Gainbitcoin Ponzi scheme was launched in 2015, allegedly orchestrated by Amit Bhardwaj (deceased) and Ajay Bhardwaj. The scheme promised investors a monthly return of 10% on BTC investments for 18 months. Initially, the scheme attracted many investors due to its high returns and multi-level marketing model. However, the collapse began when withdrawals were suspiciously switched to an in-house cryptocurrency, MCAP.

In 2018, Amit Bhardwaj and his team, including Ajay Bhardwaj, Nikunj Jain, and Sahil Baghla, were booked in connection with the scam and produced before a special court. Multiple First Information Reports (FIRs) were registered across the country, leading the Supreme Court to direct the CBI to launch a detailed investigation into the matter.