CBI Raids in Pune as Part of Nationwide Crackdown on GainBitcoin Scam
Reported by Mubarak Ansari
New Delhi/Pune, 26th February 2025: The Central Bureau of Investigation (CBI) conducted extensive searches at over 60 locations across India on Tuesday as part of its probe into the massive GainBitcoin cryptocurrency scam. The coordinated raids were carried out in major cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru, targeting properties linked to key accused individuals, their associates, and entities suspected of laundering illicit funds.
GainBitcoin was an alleged Ponzi scheme launched in 2015 by Amit Bhardwaj (deceased), Ajay Bhardwaj, and their network of agents. The scheme operated through multiple websites, including www.gainbitcoin.com, under the facade of a company named Variabletech Pte. Ltd.
The fraudulent investment scheme lured investors by promising lucrative monthly returns of 10% in Bitcoin for 18 months. Investors were asked to purchase Bitcoin from exchanges and invest in GainBitcoin through “cloud mining” contracts. The model followed a multi-level marketing (MLM) structure, characteristic of pyramid schemes, where payouts relied on recruiting new investors.
Initially, investors received returns in Bitcoin, but as new investments declined in 2017, the scheme began to unravel. To cover losses, GainBitcoin allegedly switched payouts to its in-house cryptocurrency, MCAP, which had significantly less value than Bitcoin, further defrauding investors.
Multiple FIRs were registered across India, including in Jammu & Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra, alleging large-scale fraud and money laundering. Due to the vast scope of the scam, the Supreme Court of India transferred these cases to the CBI for a comprehensive investigation.
The CBI has taken over the probe to uncover the full extent of the fraud, identify all accused parties, and trace the misappropriated funds, including international transactions.
Seizures and Evidence Collection
During the nationwide searches, the CBI seized:
Crypto wallets suspected to contain illicit digital assets.
Incriminating digital evidence from electronic devices.
Emails and cloud storage data linked to fraudulent transactions.
The probe into the multi-crore GainBitcoin scam is ongoing.
