India's ED is investigating Raj Kundra in an $800 million cryptocurrency Ponzi scheme, seizing his assets and linking him to a failed Bitcoin mining project.
The Enforcement Directorate (ED) is investigating Raj Kundra, a prominent businessman and husband of Bollywood actress Shilpa Shetty, in connection with a money laundering case related to a cryptocurrency Ponzi scheme called 'Gain Bitcoin'. There is. Notably, Kundra is not the main suspect in this investigation.
In the ongoing investigation, the ED has seized assets worth around $12 million, including a Mumbai apartment owned by Shilpa Shetty.
Launched in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, Gain Bitcoin, paid in Bitcoin and promising investors 10% monthly returns, quickly amassed around $800 million. collected.
The scheme initially operated by using funds from new participants to distribute profits to early investors. However, when it became difficult to recruit new investors, the dividend was suspended. The organizers then converted the remaining funds into Bitcoin and stashed them in an anonymous digital wallet.
The investigation revealed that Kundra received 285 Bitcoins, currently worth more than $18 million, from the scheme's promoter, Amit Bhardwaj. The token was intended for a Bitcoin mining project in Ukraine, but that never materialized, and reports suggest Kundra still holds the token.
Kundra and Shetty deny any connection to the scheme and are confident they will be cleared of all charges once the investigation is complete.
The emergence of “get bitcoin” scams coincides with increased scrutiny by Indian regulators of illegal activities involving cryptocurrencies.
Last month, the Enforcement Directorate stepped up its efforts by filing chargesheet against 299 entities under India's strict anti-money laundering laws. The legal action was taken in response to a series of scams in which investors were misled by promises related to cryptocurrency mining ventures.
Additionally, the crypto fraud landscape in India is evolving, with new patterns emerging among fraudsters. Recently, scams posing as job seekers have been on the rise. These malicious actors simply target unsuspecting job seekers and scam them by offering them roles that purport to involve trading cryptocurrencies or related projects.
