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Massive Bitcoin Scam Sparks Nationwide Raids
India’s CBI is conducting nationwide raids as part of its probe into the GainBitcoin scam, an eight-year-old cryptocurrency fraud that duped thousands of investors. Searches are underway in Delhi, Bengaluru, Pune, Nanded, and several other cities.
The scam, which started in 2013, promised investors high Bitcoin returns through a cloud-based trading and mining scheme. Instead, the masterminds pocketed the money.
Masterminds
The scheme was led by Amit Bhardwaj and his brother Vivek Bhardwaj. They positioned themselves as crypto evangelists but were actually running a Ponzi scheme.
- Amit Bhardwaj – The alleged mastermind of GainBitcoin.
- Vivek Bhardwaj – Promoted and marketed the scam at crypto events.
- The duo was arrested in 2017, after multiple complaints from victims.
Amit Bhardwaj passed away in January 2022 due to a cardiac arrest while out on bail.
Scam Investors
- The Bhardwaj brothers promised investors huge returns on Bitcoin investments.
- Instead of buying Bitcoin, they purchased Ether (ETH) and Mcap (MCAP) tokens at a lower cost and pocketed the difference.
- Most victims were unaware of how cryptocurrency worked, making it easier for them to be deceived.
CBI’s Commitment to Justice
So far, eight individuals have been arrested in connection with the fraud. Police Commissioner Rashmi Shukla emphasized that the lack of crypto awareness at the time made investors vulnerable.
The CBI has pledged to continue its investigation until all those responsible are held accountable.
