Bitcoin Scam: In a Money Laundering Investigation, the ED Seizes INR 10.63 Crore in Dubai Assets

Nitin Konde, Varun Bhardwaj

24 Feb 2025 — 2 min read

ED Seizes ₹10.63 Crore Dubai Assets in Bitcoin Scam Probe

On February 17, the Enforcement Directorate (ED) temporarily seized INR 10.63 crore in real estate in accordance with the Prevention of Money Laundering Act (PMLA), 2002. The late Amit Bhardwaj is the owner of these assets. According to the agency's statement on 19 February, the attached properties include commercial buildings situated in Dubai, the United Arab Emirates' premier business districts.

Following several FIRs against M/s Variable Tech Pte Ltd and a number of people, including the late Amit Bhardwaj, his family members Ajay, Vivek, Simpy, and Mahender Bhardwaj, as well as several MLM agents, the ED launched its investigation. The defendants allegedly promised a 10% monthly return in Bitcoin to gullible members of the public in exchange for significant sums of money in the form of Bitcoins. Investors were promised enormous returns in cryptocurrency assets, and the gathered Bitcoins were allegedly to be used for Bitcoin mining. The promoters, however, defrauded the investors and hid the illicitly obtained Bitcoins in hidden web wallets.

Multiple Search Operations by ED

The ED already carried out several search operations in connection with this investigation. Three people have been taken into custody: Nikhil Mahajan (arrested on January 16, 2023), Nitin Gaur (arrested on December 29, 2023), and Simpy Bhardwaj (arrested on December 17, 2023). In the same case, businessman Raj Kundra and his wife, actress Shilpa Shetty, had immovable and moveable properties valued at INR 97.79 crore seized by the ED. A bungalow in Pune, equity shares owned by Raj Kundra, and a residential unit in Juhu, Mumbai, registered in Shilpa Shetty's name are among the attached assets. The famous couple contested these notices in the Bombay High Court, claiming that the ED had overreached itself and infringed upon their legal rights. The ED was ordered by the court to wait to issue the eviction notices until the couple appealed to the appellate body.

ED's Claims

According to the ED, investors were expected to receive substantial returns on their cryptocurrency investments, and the gathered cryptocurrency was to be used for Bitcoin mining.However, according to the agency, the promoters defrauded the investors and were hiding the illicitly obtained Bitcoins in "obscure" online wallets. The ED has already arrested Simpy Bhardwaj, Nitin Gaur, and Nikhil Mahajan. The primary suspects, Ajay and Mahendra Bhardwaj, are still evading capture, according to the federal investigation agency. Since money obtained from the proceeds of crime has travelled outside, the ED has looked to other nations for assistance.

Amit and Vivek Bhardwaj founded Variable Tech in Singapore in 2014, launching BitEx, a cryptocurrency exchange that offers Bitcoin mining contracts, according to the chargesheet filed by the Pune Police. A 10% monthly return on each investment for 18 months was promised under these contracts, and Bitcoin would be used for payout. The company's scam resulted in the loss of 8,000 investors' funds. On January 15, 2022, Amit Bhardwaj passed away from cardiac arrest.