Author: Jai Pratap, Cryptonews; Compiler: Songxue, Golden Finance
India’s investigation agency Enforcement Directorate (ED) arrested Ajay Bhardwaj’s brother-in-law Nitin Nitin Gaur, who is suspected of participating in the multi-billion dollar GainBitcoin Ponzi scheme.
The arrest is part of the ongoing investigation into a cryptocurrency fraud case involving M/s Variable Tech Pte Ltd and its promoters.
Gaur faces charges under the Prevention of Money Laundering Act (PMLA) for his alleged role in concealing and layering proceeds of crime arising from the GainBitcoin Ponzi scheme.
Earlier, the Supreme Court of India, responding to a petition filed by Ajay Bhardwaj, directed the Central Bureau of Investigation (CBI) to investigate the case. Meanwhile, the court directed the education department to continue its ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation into the cryptocurrency Ponzi scheme has been reopened after the discovery of major moves by one of the main accused in the scheme, Ajay Bhardwaj. GainBitcoin is a scam group that collects hundreds of thousands of Bitcoins and promises a monthly return of 10%.
The funds were ostensibly for a Bitcoin mining operation, but an investigation uncovered a network of deceptions in which the promoters allegedly hid ill-gotten Bitcoins in anonymous online wallets . GainBitcoin allegedly collected approximately 200 billion Indian rupees ($2.4 billion) in Bitcoin from victims.
GainBitcoin collected hundreds of thousands of Bitcoin
ED investigation based on Mahala The FIR was filed by the Strapan and Delhi police against family members, including Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj and Mahender Bhardwaj, as well as several multi-level marketing (MLM) agents.
ED revealed that Nitin Gaur knowingly received proceeds of crime from a wallet controlled by mastermind Ajay Bhardwaj in his Binance exchange cryptocurrency account. Gaur actively assisted Ajay in his illegal financial activities related to the Ponzi scheme.
Nitin Gaur is the brother of Simpy Bhardwaj, who was raided by investigative agencies last month He was later arrested at his residence. Simpy remains in judicial custody.
ED steps up investigation into India's largest cryptocurrency Ponzi scheme /span>
On December 29, Gower was arrested after his residence was searched and he was later taken to Mumbai for further proceedings.
The Special Magistrate of Mumbai PMLA granted ED custody for custodial interrogation till January 6, 2024.
Meanwhile, the Directorate of Education conducted searches on the premises of a hawala operator suspected of being linked to the promoters of the GainBitcoin scam. News has surfaced about cryptocurrency traders converting various cryptocurrencies into Indian rupees without proper accounting, hinting at potential money laundering. The businessmen have been summoned for questioning.
GainBitcoin’s investigation also exposed the defendant promoters’ proficiency in crypto-asset trading, using sophisticated methods such as false KYC documents, VPNs, and mixing, swapping, and peer-to-peer exchanges to conceal the proceeds of their crimes. The main accused Ajay Bhardwaj and Mahender Bhardwaj are still at large.
Wilfred
