Four years after India’s biggest cryptocurrency fraud case came to light, the company is releasing new details, detailing the size and scope of the scam.
Previously, police estimated that around 80,000 BTC were involved in the GainBitcoin scam, but they now suspect the number could be anywhere between 385,000 and 600,000, media reports said. Even at the current rate, 600,000 BTC is worth over $12 billion, which is close to a trillion rupees.
Reports also suggest that the number of people duped could be as high as 100,000. The police complaints (First Information Report – FIR) filed by investors who lost their money in MLM scheme have increased to 40. The police have so far traced 60,000 user IDs and email addresses.
Amit Bhardwaj, the mastermind of the Gainbitcoin scam, died of cardiac arrest in January this year.
flawed business model
This multilevel marketing scheme offered a 10% monthly return on BTC investment in bitcoin for 18 months. Investors from India and abroad deposited their BTC in the greed of higher returns. But given the limited number of BTC, it was a flawed business model from the start, which eventually culminated in 2018, leaving a long way for fraudulent investors.
During the lengthy investigation and judicial proceedings, the Supreme Court of India once asked a public prosecutor to explain whether bitcoin was legal in India – a question that so far the authorities have avoided answering directly.
India’s Enforcement Directorate (ED) is probing the matter and has registered a case against Amit Bhardwaj’s father and several members of his family, including his brother, for their alleged involvement in the scam. In March, it moved the Supreme Court of India to direct the brother of Amit Bhardwaj, a prime accused and Amit Bhardwaj, to grant access to his crypto wallet by giving him a username and password.
However, the accused said that he had already given all the information to the police through his lawyer.
But investigators believe that the Bharadwaj family, including Ajay, used multiple wallets to deposit BTC, and many of them are yet to be traced. Earlier this month, the ED conducted raids at six locations in Delhi, some of which belonged to lawyers of a Delhi-based law firm.
Media reports that the ED has confiscated several electronic devices and important papers suggest that the number of people duped by the GainBitcoin scam may exceed 100,000.
before, cryptopotato reported that police arrested two private investigators on charges of stealing 1,100-odd BTC from a purse during an investigation into the case. He was taken on board to assist the police in the investigation as the officers lacked the necessary expertise.
One of the investigators was a former police officer of the prestigious Indian Police Service (IPS) who took voluntary retirement and started a private investigative firm specializing in cryptocurrency fraud.
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