Investigation into Raj Kundra’s Involvement in $800m Cryptocurrency Ponzi Scheme: ED Seizes Assets and Links Him to Failed Bitcoin Mining Project
The Enforcement Directorate (ED) in India is currently investigating prominent businessman Raj Kundra in connection to an $800 million cryptocurrency Ponzi scheme known as ‘Gain Bitcoin.’ While Kundra is not the main suspect in the case, the ED has seized assets worth $12 million, including a Mumbai flat owned by his wife, Bollywood actress Shilpa Shetty.
The scheme, launched in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, promised investors a monthly return of 10% in Bitcoin and quickly amassed a staggering amount of funds. However, as new investors became scarce, the payouts stopped, and the organizers converted the remaining funds into Bitcoins, hiding them in anonymous digital wallets.
Investigations have revealed that Kundra received 285 Bitcoins, now valued at over $18 million, from Amit Bhardwaj, the scheme’s promoter. The tokens were supposedly meant for a Bitcoin mining project in Ukraine that never materialized, and reports suggest Kundra still holds them.
Both Kundra and Shetty have denied any involvement in the scheme and are confident they will be cleared of all charges once the investigation is completed. The emergence of the ‘Gain Bitcoin’ scam comes at a time when Indian regulators are cracking down on illicit activities involving cryptocurrencies.
Recently, the Enforcement Directorate filed a charge sheet against 299 entities under India’s anti-money laundering laws in response to a series of frauds related to crypto mining ventures. Additionally, a new trend in cryptocurrency scams has emerged in India, where fraudsters pose as job recruiters to deceive unsuspecting job seekers with promises of roles involving cryptocurrencies, only to defraud them.
As the investigation into the ‘Gain Bitcoin’ scheme continues, the ED’s efforts to combat cryptocurrency-related fraud highlight the need for increased vigilance and regulation in the rapidly evolving landscape of digital currencies in India.
