Home / Crypto Currency / Indian Authorities Round up on Bitcoin Scammer’s Properties Worth $60 Million

Indian Authorities Round up on Bitcoin Scammer’s Properties Worth $60 Million

GainBitcoin India Amit Bhardwaj


The Directorate of Enforcement (ED) attached $60 million worth of assets in connection with its probe against Amit Bhardwaj in the alleged Bitcoin Ponzi fraud of $5.26 billion.

The Indian law enforcement agency has attached immovable properties of the owner of GainBitcoin.com, including six offices in Dubai and the residential apartments and bank balances of two of his associates Hemant Bhope and Pankaj Adlakha, under the provision of Anti Money Laundering (AML) act.

It is the first attachment in the case where Bhardwaj, under the guise of Variabletech Pvt Ltd, Singapore, duped 8,000 people into investing in his fraudulent Bitcoin trading Ponzi scheme, www.gainbitcoin.com. The alleged conspirator would hold marketing events at expensive hotels across India, where his associates attracted attendees towards their Bitcoin mining investment schemes. In an event held in Noida city in 2016, which the author attended in person, the marketers claimed that GainBitcoin owns mining facilities in China. As proof, they showed attendees video clips that formerly belonged to one of the Motherboard coverages of a Chinese mining facility.

Tricks such as these were used to lure people that had no prior knowledge of Bitcoin. The digital currency’s potential as an investable asset would fuel investors’ interest, with most of them often mistaking GainBitcoin as the “Bitcoin company.” One of the Indian parliamentarians even went ahead calling Bitcoin a Ponzi scheme while referring to GainBitcoin.

Under these shady schemes, Bhardwaj and his associated embezzled around 8,000 Bitcoins. When the time to pay back investors arrived, Bhardwaj issued them a privately created, and worthless, cryptocurrency called MCAP. He even purchased sponsored stories across the leading news channels in the Bitcoin industry to fake a positive sentiment about his coin.

“There are large numbers of investors who got cheated in this way,” the ED stated.

For a more significant time, readers in India with access to basic knowledge of Bitcoin saw the digital currency as a tool to scam people. GainBitcoin unknowingly initiated a mistrust between the regulators and digital currency companies that continues to haunt the crypto-regulatory climate in the country even today.

Bhardwaj even roped in Bollywood celebrities, including Bipasha Basu, Shilpa Shetty, and Nargis Fakhri, to promote his ebook called Cryptocurrency for Beginners. Shilpa Shetty’s husband and celebrated Indian businessman Raj Kundra also faced ED over his monetary involvement in Bhardwaj’s company.

The Pune police arrested Bhardwaj in April at New Delhi airport when he was returning from Dubai. Since then, Bhardwaj has offered to repay his investors in Indian Rupees. The price of Bitcoin has increased ever since which is why investors have rejected Bhardwaj’s proposal in fears of losing out on profits they could make had they held onto their crypto-assets.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Read more

Check Also

Bitcoin (BTC) Price Watch: Stuck in This Short-Term Range

Bitcoin Price Key Highlights Bitcoin price is still treading sideways, right in the middle of its range visible on the 1-hour and 4-hour charts. Price has yet to break out of the current consolidation to show whether it would make a test of support or resistance. Technical indicators seem to be suggesting that a move towards the bottom of the range is due. Bitcoin price still seems to be waiting for directional clues as it moves sideways in the middle of a $600-sized range. Technical Indicators Signals The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a move lower is more likely to happen than a break higher. The moving averages also appear to be holding as dynamic resistance levels as well. Stochastic is turning lower after recently hitting overbought levels, also suggesting a return in selling pressure. This might be enough to take bitcoin price to the bottom of its range at $6,200. RSI is already on the move down to confirm that sellers have the upper hand. If buyers are able to step in, a move to the range top at $6,800 could be seen. A break above this could lead to a rally of the same height as the rectangle while a drop below support could lead to a selloff of the same size as well. There are a handful of positive developments in the bitcoin industry these days, but it looks like traders are waiting for bigger announcements or might be feeling anxious while the SEC continues to mull its decision on the ETFs. The launch of Fidelity’s institutional platform is big news as this would usher in big flows from funds, banks, and financial institutions. This would boost volumes, activity, and demand, thereby shoring up prices. The post Bitcoin (BTC) Price Watch: Stuck in This Short-Term Range appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.