The investigation conducted by India’s Enforcement Directorate (ED) has turned its focus on Raj Kundra, a well-known figure in the business realm and spouse of Bollywood luminary Shilpa Shetty, in connection to an alleged $800 million cryptocurrency Ponzi scheme known as ‘Gain Bitcoin.’
While Kundra is under scrutiny, he is not the primary suspect in this complex case.
The ED’s ongoing inquiry has led to the seizure of assets valued at approximately $12 million, including a residential property in Mumbai registered under Shilpa Shetty’s name.
The saga of ‘Gain Bitcoin’ began in 2017 when Ajay Bhardwaj and Mahendra Bhardwaj initiated the scheme, enticing investors with promises of a 10% monthly return in Bitcoin, which swiftly amassed an estimated $800 million.
Initially, the scheme operated as promised, using funds from new participants to distribute returns to early investors.
However, when attracting new investors became challenging, the promised payouts ceased, and the orchestrators allegedly converted the remaining funds into Bitcoin, concealing them in anonymous digital wallets.
Investigators have uncovered evidence suggesting that Kundra received 285 Bitcoins, currently valued at over $18 million, from Amit Bhardwaj, the mastermind behind the scheme.
These tokens were supposedly earmarked for a Bitcoin mining venture in Ukraine, which never came to fruition, and reports indicate that Kundra still possesses them.
Kundra and Shetty vehemently deny any involvement in the fraudulent scheme and express confidence in their eventual exoneration once the investigation concludes.
The ‘Gain Bitcoin’ scandal emerges amidst heightened regulatory scrutiny in India regarding illicit activities involving cryptocurrencies.
Last month, the Enforcement Directorate intensified its efforts by initiating legal proceedings against 299 entities under India’s stringent anti-money laundering statutes, in response to a series of frauds wherein investors were deceived by promises associated with crypto mining ventures.
