ED investigates Bollywood star’s involvement in $800 million cryptocurrency ponzi scheme
India’s Enforcement Directorate (ED) is currently investigating Raj Kundra, a well-known businessman and husband of Bollywood actress Shilpa Shetty, in connection with a money laundering case related to a cryptocurrency Ponzi scheme called ‘Gain Bitcoin.’ It is important to note that Kundra is not the primary suspect in this investigation.
During the ongoing probe, the ED has seized assets worth approximately $12 million, including a Mumbai apartment owned by Shilpa Shetty.
Established in 2017 by Ajay Bhardwaj and Mahendra Bhardwaj, ‘Gain Bitcoin’ promised investors a monthly return of 10% in Bitcoin and quickly amassed around $800 million.
Initially, the scheme operated by using funds from new participants to distribute returns to early investors. However, as it became more challenging to recruit new investors, the payouts stopped. The organizers then converted the remaining funds into Bitcoins and concealed them in anonymous digital wallets.
Investigations have revealed that Kundra received 285 Bitcoins, which are now valued at over $18 million, from Amit Bhardwaj, the mastermind behind the scheme. These tokens were supposedly intended for a Bitcoin mining project in Ukraine that never materialized, and it is believed that Kundra still possesses them.
Kundra and Shetty have both denied any involvement in the scheme and remain confident that they will be cleared of all charges once the investigation is completed.
The emergence of the ‘Gain Bitcoin’ scam coincides with increased scrutiny by Indian regulators regarding illicit activities involving cryptocurrencies.
Last month, the Enforcement Directorate took further action by filing a charge sheet against 299 entities under India’s strict anti-money laundering laws. This legal action was a response to a series of frauds in which investors were deceived by promises related to crypto mining ventures.
Moreover, the landscape of cryptocurrency scams in India is evolving, with a new pattern emerging among fraudsters. Recently, there has been a rise in scams where criminals pose as job recruiters. These malicious individuals target unsuspecting job seekers, offering them positions that supposedly involve dealing with cryptocurrencies or related projects, only to defraud them.
Read more: Indian Police Arrest Two Suspects in Alleged $12 Million Crypto Scam Follow Us on Google News
