CBI Cracks Down on $800M GainBitcoin Scam, Conducts Raids Across India

26. Feb 2025 Posted by Bakshi A. on News

India’s Central Bureau of Investigation (CBI) has intensified its crackdown on cryptocurrency fraud, conducting raids at 60 locations nationwide. The operation targeted cities including Delhi NCR, Pune, Chandigarh, Nanded, Kolhapur, and Bengaluru as authorities continue investigating the massive $800 million (₹6,600 crore) GainBitcoin scam.

The scheme, launched in 2015 by Amit Bhardwaj—who passed away in 2022—and his brother Ajay Bhardwaj, lured investors with promises of 10% monthly returns through Bitcoin (BTC) “cloud mining contracts.” Operated under Variabletech Pte. Ltd., GainBitcoin quickly grew into one of India's most notorious multi-level marketing (MLM) scams.

According to a CBI statement released Tuesday, investigators have consolidated multiple cases across several states, including Punjab, Maharashtra, and West Bengal, into a single probe. The agency aims to expose the full extent of the fraud, track down all accused individuals, and trace misappropriated funds—many of which have reportedly been funneled abroad.

During the raids, officials seized crucial digital evidence, including crypto wallets, cloud storage data, and emails, which could help authorities follow the money trail. Experts warn that despite growing regulatory scrutiny, scams like GainBitcoin continue exploiting legal loopholes and investor naivety.

“MLM-based crypto schemes remain a major issue in India, preying on uninformed investors who are promised unrealistic returns,” said Sudhakar Lakshmanaraja, founder of blockchain education platform Digital South Trust.

The scam collapsed in 2017 when GainBitcoin replaced BTC payouts with its in-house token, MCAP, leaving investors stranded with worthless digital assets. The case gained further momentum in 2022 when India’s Supreme Court ordered Ajay Bhardwaj to disclose details of his deceased brother’s crypto wallet—crucial to recovering lost funds.

India’s crackdown on crypto fraud is intensifying, with law enforcement targeting similar scams. Just last week, Mumbai police booked Ravi Mahaseth, managing director of Coin ZX, for allegedly defrauding investors of $23 million (₹200 crore) through a Bitcoin investment scheme.

As the CBI pushes forward with its investigation, the GainBitcoin saga serves as a stark warning about the risks of unregulated crypto investment schemes in India.