The fraud was orchestrated by Amit Bhardwaj, the director of Gain Bitcoin, a company that attracted investors by promising high returns on bitcoin investments.
Bhardwaj lured thousands of people into investing their money, but the company operated as a multi-level marketing (MLM) scheme. The funds were not actually invested in bitcoin as claimed.
Victims alleged that Gain Bitcoin duped them into investing substantial sums, promising massive returns on their investments. The scam involved approximately US $300 million (around ₹2,000 crore), making it one of the largest cryptocurrency-related frauds in India. After the scam was exposed, Bhardwaj fled India, reportedly to Bangkok, Thailand, to evade arrest.
He was eventually tracked down and arrested at Delhi airport in April 2018 when he attempted to return to India. The Pune Police registered a case against Bhardwaj and his company, initiating a thorough investigation. The case was first reported in Pune, Maharashtra, where victims filed complaints.
Bhardwaj faced charges of cheating, criminal conspiracy, and money laundering, among others. Several individuals associated with the Gain Bitcoin platform were also arrested.
Cryptocurrencies like Bitcoin were used as a lure, with victims promised high returns through bitcoin investments. However, the scam involved using bitcoins as a mechanism for deception rather than a legitimate investment. The scam raised concerns about the lack of regulation around cryptocurrencies in India, highlighting the risks of investing in unregulated or unverified schemes.
The Gain Bitcoin scam underscored the vulnerabilities faced by investors in the rapidly growing cryptocurrency space. It emphasized the need for greater awareness, regulation, and investor protection when dealing with digital currencies. The incident led to calls for stronger regulation around cryptocurrencies to prevent similar frauds in the future.
The Gain Bitcoin scam serves as a cautionary tale about the dangers of investing in unverified cryptocurrency schemes. Amit Bhardwaj’s arrest marked the culmination of a high-profile investigation, but the case continues to raise significant questions about the regulation of digital currencies and investor protection in India.
