Bitcoin

Million

Read

India’s ED is investigating Raj Kundra in a $800m cryptocurrency Ponzi scheme, seizing assets and linking him to a failed Bitcoin mining project. 
The Enforcement Directorate (ED) is <a href="https://www.ndtv.com/india-news/all-about-rs-6-600-crore-bitcoin-scam-that-raj-kundra-is-being-probed-in-5468390" target="_blank" rel="">probing </a>Raj Kundra, a prominent businessman and husband of Bollywood actress Shilpa Shetty,&nbsp;concerning&nbsp;a money laundering case linked to a cryptocurrency Ponzi scheme dubbed ‘Gain Bitcoin.’ Notably, Kundra is not the main suspect in this investigation. 
In the ongoing probe, the ED has confiscated assets worth roughly $12 million, including&nbsp;a Mumbai flat owned by Shilpa Shetty. 
Launched in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, ‘Gain Bitcoin’ promised investors a return of 10% per month, payable in Bitcoin, and quickly amassed about $800 million. 
The scheme initially operated by distributing returns to early investors using the funds from new participants. However, as recruiting new investors became challenging, the payouts stopped. The organizers then converted the remaining funds into Bitcoins and hid them in anonymous digital wallets. 
Investigations have revealed that Kundra received 285 Bitcoins, now worth over $18 million, from Amit Bhardwaj, the promoter behind the scheme.&nbsp;The tokens&nbsp;were purportedly intended&nbsp;for a Bitcoin mining project in Ukraine that&nbsp;never materialized, and&nbsp;reports suggest Kundra still holds them. 
 You might also like: <a href="https://crypto.news/indian-police-officers-arrested-in-300m-crypto-scam-investigation/" rel=""> Indian police officers arrested in $300m crypto scam investigation </a> 
Kundra and Shetty have denied any links to the scheme and remain confident they will be cleared&nbsp;of all charges once the investigation&nbsp;is completed. 
The emergence of the ‘Gain Bitcoin’ scam coincides with increased scrutiny by Indian regulators over illicit activities involving cryptocurrencies. 
Last month, the Enforcement Directorate escalated its efforts by filing a <a href="https://crypto.news/indias-ed-leads-crackdown-on-cryptocurrency-scam-with-charge-sheet-against-299-entities/" rel="">charge sheet</a> against 299 entities under India’s stringent anti-money laundering laws. The legal action was a response to a series of frauds where investors were misled by promises related to crypto mining ventures. 
Furthermore, the landscape of cryptocurrency scams in India is evolving, with a new pattern emerging among fraudsters. Recently, there has been a rise in scams where <a href="https://crypto.news/new-job-recruitment-crypto-scam-surfaces-in-india/" rel="">perpetrators pose</a> as job recruiters. These malicious actors target unsuspecting job seekers, offering them roles that purportedly involve dealings in cryptocurrencies or related projects, only to defraud them. 
 Read more: <a href="https://crypto.news/indian-police-arrest-two-suspects-in-alleged-12-million-crypto-scam/" rel=""> Indian Police Arrest Two Suspects in Alleged $12 Million Crypto Scam </a>

India’s ED probe Bollywood star in $800m crypto ponzi scheme

crypto.news

Other articles published on Apr 19, 2024

Halving Bitcoin: Can ETFs overshadow its historical impact?

Dubai Defies Nature’s Fury: Global AI and Blockchain Shows Shine Through Adverse Weather

Key Developments in Bitcoin and Ethereum Options Markets

Bitcoin ETFs See $55M Outflow: Market Correction or Sign of Trouble?

Polkadot Announces JAM Upgrade and 10 Million DOT Prize Pool

Key Crypto Events Including Binance Megadrop, Coinbase Listing Dogwifhat (WIF) Perpetual Futures ...

Join our free newsletter for daily crypto updates!