In an INR 6,600 Cr GainBitcoin Cryptocurrency Scam, CBI Raids 60 Locations in India

Nitin Konde, Varun Bhardwaj

26 Feb 2025 — 2 min read

CBI Raids 60 Locations Across India in INR 6,600 Cr GainBitcoin Scam

As part of its investigation into the INR 6,600 crore GainBitcoin cryptocurrency scam, the CBI carried out coordinated nationwide searches at 60 locations on 25 February, according to officials. A CBI spokeswoman stated in a statement that the searches, which targeted locations allegedly connected to important accused individuals, were conducted in several cities, including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru. The authorities claimed that Amit Bhardwaj, who is no longer alive, and his brother Ajay Bhardwaj were the masterminds of the ponzi scheme, which was carried out through a network of platforms, including the flagship website www.gainbitcoin.com. They said that the illegal enterprise, which was started in 2015, was disguised as Variabletech Pte. Ltd.

How Scheme Attracted the Investors?

Over an 18-month period, the scheme enticed investors with spectacular profits of 10% per month in Bitcoin, enticing them to buy the cryptocurrency from outside exchanges and deposit it with GainBitcoin through "cloud mining" contracts, according to the central agency. The spokesman went on to explain that the model used a multi-level marketing (MLM) structure, which is frequently linked to pyramid-structured Ponzi scams, and that rewards were reliant on attracting new investors.

Investors were paid in Bitcoin in its early days, creating the appearance of a successful business. But by 2017, the illusion was starting to fall apart as the flow of fresh funds decreased. The allegation added that GainBitcoin unilaterally changed payouts to its own in-house cryptocurrency, MCAP, which was much less valuable than Bitcoin, in an effort to conceal the losses, further deceiving investors.

Multiple FIRs Filed

Due to the scam's immense scope and complications, several FIRs were registered and filed throughout India, ranging from Delhi to West Bengal and from Maharashtra to Jammu & Kashmir. Given the scope of the operation and its global implications, the Supreme Court assigned the inquiry to the Central Bureau of inquiry (CBI).

According to the statement, the CBI took over these cases and is now carrying out a thorough and all-encompassing investigation to determine the full scope of the fraud, identify all persons involved, and track down the money that was embezzled, including transactions that took place abroad. In order to determine the entire scope of the fraudulent actions, find all people involved, and track down the embezzled money—including any that may have crossed international borders—the agency has started an investigation. According to the Central Agency, a small number of cryptocurrency wallets, digital gadgets, and damning material were found during searches. Additionally, the evidence found in emails and cloud storage has been confiscated.