ED launches probe against Bitcoin scam mastermind Bhardwaj

ST Correspondent
Wednesday, 26 September 2018

Mumbai: Directorate of Enforcement (ED) has attached immovable properties and bank accounts worth Rs 42.88 crore of Amit Bhardwaj and his accomplices in the Bitcoin trading Ponzi scheme under the banner of Variabletech Pvt Ltd, Singapore.

Mumbai: Directorate of Enforcement (ED) has attached immovable properties and bank accounts worth Rs 42.88 crore of Amit Bhardwaj and his accomplices in the Bitcoin trading Ponzi scheme under the banner of Variabletech Pvt Ltd, Singapore.

According to the investigation, Amit Bhardwaj had started a company in Singapore called Variabletech Pvt Ltd in the year 2015 and through its website www.gainbitcoin.com, he launched a Ponzi scheme of Bitcoin trading. Bitcoin is a virtual crypto-currency, which is very popular amongst the investors. 

Under the said scheme, Amit Bhardwaj, through his team of marketing agents, used to lure credulous people by asking them to buy Bitcoins out of their investments and then invest these Bitcoins in his ‘Gainbitcoin’ scheme by promising very high returns in terms of bitcoins itself by use of Bitcoin mining kits. In this scheme, Bhardwaj and his marketing agents were able to collect investments worth about 80,000 Bitcoins.

However, instead of paying back the returns to investors in Bitcoins, Bhardwaj offered them returns in his own newly launched crypto-currency token MCAP, which had nearly no value on crypto-currency exchanges. There are large numbers of investors who got cheated this way. ED has initiated a iprobe under the provisions of the Prevention of Money Laundering Act, 2002.

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