New Delhi, Feb 25 (UNI) The Central Bureau of Investigation (CBI) has conducted extensive searches at more than 60 locations across the country as part of its investigation into the GainBitcoin cryptocurrency scam.
“The search operations are being carried out in major cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, Bengaluru, and others, targeting premises linked to key accused individuals, their associates, and entities suspected of laundering the proceeds of crime” CBI said in a statement on Tuesday.
It informed that the fraudulent scheme lured investors by promising lucrative returns of 10% monthly in Bitcoin for 18 months.
Investors were encouraged to purchase Bitcoin from exchanges and invest them with GainBitcoin through “cloud mining” contracts, the federal agency said.
CBI said Initially, investors received payouts in Bitcoin. However, as the influx of new investments dwindled by 2017, the scheme began to collapse.
“Multiple FIRs were registered across India, alleging large-scale fraud and money laundering. Given the vast scale and complexity of the scam, cases registered in various states” it said.
Later the case was transferred to CBI on the recommendation by Supreme Court.
The Gainbitcoin Scam was an alleged Ponzi scheme launched in 2015 by Amit Bhardwaj (deceased), along with Ajay Bhardwaj and their network of agents.
“The scheme operated through multiple websites such as www.gainbitcoin.com etc., under the facade of a company named Variabletech Pte. Ltd”, it said.
