GainBitcoin ‘scam’: CBI raids 60 locations

NEW DELHI: The Central Bureau of Investigation (CBI) is conducting nationwide searches at more than 60 locations across India as part of its inquiry into the GainBitcoin cryptocurrency scam case.

Coordinated raids are underway in Delhi-NCR, Pune, Chandigarh, Nanded, Kolhapur and Bengaluru targeting persons and entities connected to the multi-crore scam.

The operation aims to uncover crucial evidence related to money laundering and financial misappropriation tied to the accused.

The GainBitcoin scam, one of India’s “biggest cryptocurrency frauds”, was allegedly masterminded by Amit Bhardwaj, who passed away in 2022, along with his brother Ajay Bhardwaj and a vast network of agents.

GainBitcoin was launched in 2015, and it worked under the guise of a cloud mining firm. It attracted investors with the prospect of high returns—namely, a return of 10 percent per month in Bitcoin over 18 months. The model was that of a multi-level marketing (MLM) business, where payment was based on recruiting new investors, a practice typical of Ponzi schemes. First, payments were made in Bitcoin to investors, but as investments slowed down by 2017, the Ponzi scheme began to crumble. In a bid to meet losses, GainBitcoin redirected payments to MCAP, its internal cryptocurrency, which was much less valuable than Bitcoin. This action further escalated investor losses and resulted in mass complaints and lawsuits.