Mumbai: Central Bureau of Investigation (CBI) is conducting extensive searches at over 60 locations across India as part of its investigation into the GainBitcoin cryptocurrency scam.

The coordinated 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.

Background of the Gain Bitcoin Scam

GainBitcoin 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.

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 model followed a multi-level marketing (MLM) structure, commonly associated with pyramid structured Ponzi schemes, where payouts were dependent on bringing in new investors.

Initially, investors received payouts in Bitcoin. However, as the influx of new investments dwindled by 2017, the scheme began to collapse. In an attempt to cover up the losses, GainBitcoin unilaterally switched payouts to their alleged in-house cryptocurrency called MCAP, which had significantly less value than Bitcoin, further misleading investors.

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, including Jammu & Kashmir, Punjab, Chandigarh, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra, were transferred to the CBI by the Hon’ble Supreme Court of India.

CBI took over these cases and conducting an omnibus and comprehensive investigation to uncover the full extent of the fraud, identify all accused parties, and trace the misappropriated funds, including international transactions. During searches few crypto wallets, incriminating digital evidences and digital devices have been seized.

The evidences present in emails/clouds have also been seized. The CBI remains committed to ensuring a thorough and impartial investigation and bringing the perpetrators of this massive cryptocurrency fraud to justice.

Investigation is continuing.