In a significant breakthrough in the fight against cryptocurrency fraud, the Central Bureau of Investigation (CBI) has intensified its crackdown on the GainBitcoin scam, one of India’s biggest crypto frauds. The scam, which allegedly defrauded investors of over ₹6,600 crore, was masterminded by Amit Bhardwaj and his brother Ajay Bhardwaj, along with other accomplices.
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In a coordinated operation, the CBI conducted raids at 60 locations across the country, leading to the seizure of digital assets worth ₹23.94 crore. The raids targeted properties linked to key suspects and their associates, recovering crucial evidence that could further expose the scale of the fraud.
What is the GainBitcoin Scam?
The GainBitcoin scam was launched in 2015 by Amit Bhardwaj, who promised investors lucrative monthly returns of 10% on Bitcoin deposits over 18 months. The scheme operated under the company Variabletech Pte. Ltd., which was registered in Singapore but primarily targeted Indian investors.
How the Fraud Worked:
- Multi-Level Marketing (MLM) Model: GainBitcoin functioned as a Ponzi scheme, rewarding investors for bringing in new members.
- Promise of High Returns: Investors were lured in with the promise of guaranteed monthly profits from Bitcoin mining.
- Switch to Worthless Crypto: Initially, returns were paid in Bitcoin, but as the scam started to collapse in 2017, the company switched to MCAP tokens, which had negligible value.
- Massive Fund Diversion: Instead of investing in legitimate cryptocurrency mining, the operators allegedly diverted the funds for personal luxury and offshore accounts.
CBI’s Nationwide Crackdown
On February 25 and 26, 2025, the CBI carried out simultaneous searches in several cities, including:
- Delhi NCR
- Pune
- Mumbai
- Bengaluru
- Nanded
- Kolhapur
- Chandigarh
- Mohali
- Jhansi
- Hubli
Key Findings from the Raids:
- Cryptocurrencies worth ₹23.94 crore seized, held in digital wallets linked to the scam.
- Electronic devices, hard drives, and financial records confiscated, containing crucial evidence.
- Properties linked to accused individuals under investigation for potential money laundering.
- Suspicious foreign transactions identified, suggesting an international money trail.
The Role of CBI and ED in the Investigation
While the CBI is handling the criminal aspect of the case, the Enforcement Directorate (ED) is probing potential money laundering violations under the Prevention of Money Laundering Act (PMLA). Investigators believe a substantial portion of the ₹6,600 crore scam money was moved to offshore accounts using cryptocurrency exchanges and shell companies.
Challenges in Recovery:
- Many victims invested their savings in Bitcoin, which later vanished.
- Since cryptocurrencies are decentralized, tracing the flow of stolen funds remains a challenge.
- Lack of a comprehensive regulatory framework for cryptocurrencies in India complicates legal proceedings.
Who Are the Key Accused?
The GainBitcoin scam primarily revolved around:
- Amit Bhardwaj (deceased) – The mastermind behind the scam, who died in 2022.
- Ajay Bhardwaj – Amit’s brother and a key suspect in continuing the fraud.
- Several high-profile associates – Linked to digital wallets, shell companies, and fraudulent investment schemes.
Authorities believe that even after Amit Bhardwaj’s death, his network continued to operate under different identities, luring unsuspecting investors.
Impact on Investors
Thousands of individuals lost their life savings to this fraudulent scheme. Many were small investors who trusted GainBitcoin’s promise of steady passive income. Several victims have filed complaints with law enforcement agencies, demanding justice and compensation.
Investors’ Key Concerns:
- Lack of refund mechanism – Since Bitcoin transactions are irreversible, victims face difficulties in reclaiming their money.
- Trust issues with cryptocurrency – The scam has raised concerns about the safety of crypto investments in India.
- Need for stricter regulations – Many experts are calling for stronger crypto laws to prevent future scams.
Government’s Response and Future Measures
The Indian government has been tightening its stance on cryptocurrency regulations in light of scams like GainBitcoin. Authorities are discussing:
- Stricter licensing for crypto exchanges to prevent fraudulent activities.
- Better investor awareness programs to educate the public on cryptocurrency risks.
- Stronger international cooperation to track stolen funds and repatriate illicit gains.
Key Takeaways from the Scam:
✔️ Investors should be cautious of schemes promising guaranteed returns on cryptocurrency investments.
✔️ Regulatory oversight is crucial to prevent Ponzi schemes in the crypto space.
✔️ Authorities need better tools to track and recover stolen digital assets.
Moving Forward
The CBI’s nationwide crackdown on the GainBitcoin scam marks a major step in fighting crypto fraud in India. However, recovering the ₹6,600 crore stolen from investors remains a formidable challenge. As authorities continue their investigation, the case serves as a wake-up call for investors to exercise extreme caution in cryptocurrency investments.
Stay updated for more developments as the probe into the GainBitcoin scam unfolds.
By – Nikita
