ED Seizes $2.8M in Crypto in Gainbitcoin Scam Raids

Indian authorities have seized cryptocurrencies worth approximately $2.8 million following a series of raids on over 60 locations linked to the Gainbitcoin scam. The raids, conducted by the Enforcement Directorate (ED), targeted individuals and entities suspected of involvement in the scam, which defrauded investors of billions of rupees.

The ED, which is responsible for enforcing economic laws and preventing financial crimes, carried out the raids in various cities across the country, including Delhi, Mumbai, and Bengaluru. The agency seized a significant amount of cryptocurrencies, including Bitcoin, during the raids, which are believed to be part of the proceeds from the Gainbitcoin scam.

The Gainbitcoin scam, which surfaced in 2018, promised investors high returns on their investments in cryptocurrencies. However, it was later revealed that the scheme was a Ponzi scheme, with early investors being paid off with money from new investors. The scam is estimated to have defrauded over 8,000 investors of around 50 billion rupees ($670 million).

The ED's action comes as part of its ongoing investigation into the Gainbitcoin scam and its alleged mastermind, Amit Bhardwaj. Bhardwaj, along with his brother Vivek, was arrested in 2018 and is currently out on bail. The ED has previously seized properties and bank accounts worth millions of rupees belonging to the Bhardwaj brothers and other accused individuals.

The seizure of cryptocurrencies is a significant development in the case, as it highlights the growing use of digital currencies in financial crimes. The ED has been cracking down on cryptocurrency-related scams and money laundering activities in recent years, with several high-profile cases being investigated.

The Indian government has been grappling with the regulation of cryptocurrencies, with the Reserve Bank of India (RBI) previously issuing a circular banning banks from providing services to cryptocurrency exchanges. However, the Supreme Court of India struck down the circular in 2020, paving the way for the growth of the cryptocurrency industry in the country.

The ED's action in the Gainbitcoin scam case sends a strong message to potential investors and scammers alike. The agency's efforts to track down and seize the proceeds of the scam