CBI seizes crypto currencies worth over Rs 23.94 cr

New Delhi

The CBI has seized cryptocurrencies worth over Rs 23.94 crore following a two-day nationwide search operation in the GainBitcoin scam case, which concluded on Wednesday. In addition to the digital assets, the agency confiscated multiple hardware wallets, 121 documents, 34 laptops and hard disks, 12 mobile phones, and numerous email and messaging app data.

The investigation, conducted on February 25 and 26, revealed significant evidence of cryptocurrency fraud. The seized items are being sent for forensic analysis to uncover further details about fund misappropriation and potential international transactions linked to the scam.

The CBI's operation targeted 60 locations across several cities, including Delhi, Pune, Mumbai, and Bengaluru, as part of its ongoing probe. The GainBitcoin Ponzi scheme, allegedly masterminded by Amit Bhardwaj (now deceased) and his brother Ajay Bhardwaj, began in 2015 under the guise of Variable Tech Pvt. Ltd. It promised investors a 10% monthly return in Bitcoin through cloud mining contracts.

Initially, investors were paid in Bitcoin, but the scheme collapsed as new investments slowed. To cover losses, GainBitcoin switched payouts to an in-house cryptocurrency, MCAP, which was less valuable than Bitcoin. The scam has prompted investigations across India and internationally, with the Supreme Court transferring the case to the CBI. The agency is working to trace all misappropriated funds and identify all parties involved.