CBI Raids 60 Locations Across India in GainBitcoin Scam
CBI conducts nationwide raids at 60 locations, targeting the ₹6,600 crore GainBitcoin cryptocurrency scam.
- CBI targets ₹6,600 crore GainBitcoin scam with nationwide raids.
- Mastermind Amit Bhardwaj’s scheme promised high Bitcoin returns.
- Investors misled with less valuable MCAP cryptocurrency payouts.
The Central Bureau of Investigation (CBI) has launched extensive raids across 60 locations in India, targeting individuals and entities linked to the ₹6,600 crore GainBitcoin cryptocurrency scam. This coordinated operation spans major cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru, focusing on premises associated with key accused persons, their associates, and entities suspected of laundering illicit funds.
Unveiling the GainBitcoin Ponzi Scheme
Initiated in 2015 by Amit Bhardwaj (now deceased) and his brother Ajay Bhardwaj, GainBitcoin operated under the guise of Variabletech Pte. Ltd. The scheme enticed investors with promises of extraordinary returns—10% monthly in Bitcoin over an 18-month period. Participants were encouraged to purchase Bitcoins from external exchanges and invest them through “cloud mining” contracts offered by GainBitcoin. The operation followed a multi-level marketing (MLM) structure, where returns were heavily reliant on recruiting new investors, a hallmark of pyramid schemes
Transition to MCAP and Investor Deception
In its initial phase, the scheme provided payouts in Bitcoin, creating an illusion of profitability. However, as the influx of new investments declined by 2017, the operation’s sustainability faltered. To mitigate the impending collapse, GainBitcoin unilaterally shifted payouts to their in-house cryptocurrency, MCAP, which held significantly less value than Bitcoin. This strategic move further misled and disadvantaged investors, exacerbating their financial losses.
JUST IN: 🇮🇳 CBI conducts searches at over 60 locations across India in GainBitcoin scam. pic.twitter.com/w5DYBO2uwE
— Crypto India (@CryptooIndia) February 25, 2025
Legal Proceedings and Ongoing Investigations
The vast scale and intricate nature of the scam led to multiple First Information Reports (FIRs) across various states, including Jammu & Kashmir, Punjab, Delhi, West Bengal, Madhya Pradesh, Karnataka, and Maharashtra. Recognizing the nationwide impact and international implications, the Supreme Court transferred the investigation to the CBI. The agency is committed to conducting a thorough and impartial probe to uncover the full extent of the fraud, identify all involved parties, and trace the misappropriated funds, including those routed through international channels. Recent raids have resulted in the seizure of several crypto wallets, incriminating digital evidence, and electronic devices. The CBI’s efforts underscore its dedication to bringing the perpetrators of this massive cryptocurrency fraud to justice.
