India 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 more than 50 billion rupees ($670 million).

The ED's action comes as part of a broader crackdown on cryptocurrency-related frauds and scams in India. The agency has been investigating several cases involving cryptocurrency scams, including the Gainbitcoin case, and has seized millions of dollars worth of cryptocurrencies in the process.

The Indian government has been taking a tough stance on cryptocurrencies, with the Reserve Bank of India (RBI) issuing a circular in 2018 prohibiting 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 seizure of $2.8 million in cryptocurrencies is a significant development in the ongoing crackdown on cryptocurrency-related frauds and scams in India. The agency's action sends a strong message to potential scammers and investors alike, warning them of the risks associated with investing in unregulated cryptocurrencies.