Indian Police Dismantles Two Bitcoin Ponzi Schemes and Arrests Suspects

Cryptocurrency and Bitcoin Ponzi schemes spread all over the world. This time, the Indian police was able to arrest two individuals that were involved in the ‘GainBitcoin’ Ponzi case. The information has been released by The Times of India on August 17, 2018.

This is related to a series of arrest that the police made in Delhi in the last weeks, where it was able to raid a mining facility related to GainBitcoin.com. The local reports say that two of the suspects were trying to steal funds from different investors across India with marketing campaigns.

As per the officials that commented on the matter, there were hundreds of individuals involved in these scams to the crypto community and to investors.

One of the officials quoted by the newspaper commented on the matter:

“The due were involved in marketing the scheme. They had lured hundreds of people and then disappear. We are investigating the case and are also finding out the number of people that have been duped.”

Moreover, they claim that the accused individuals had close ties with Amit Bhardwaj, the individual in charge of the famous virtual currency Ponzi scheme known as GainBitcoin. The estimated money managed was close to $300 million dollars.

The ponzi scheme known as GainBitcoin started as a multi-level-marketing scheme that aimed to attract as many investors as possible after promising a monthly return of 10% of their investment. Indeed, after starting in 2015, more than 100,000 decided to place their funds on it.

In April 2018, two First Information Reports (FIRs) were filed against the company GainBitcoin, allowing authorities to know about the scam that was being carried out. Regulatory agencies realized about that and regarded the crime as a multi-city operating.

During the investigation, it was possible to discover that some wallets were managed by Bhardwaj, containing over 3.31 – after managing 5,372 BTC. Moreover, the cryptocurrency exchange Zebpay was used to launder some funds in the platform.

Bhardwaj is trying to repair the harm produced with this scam. He offered investors to repay their initial bitcoin investments in their corresponding value using Indian rupees. But he did not receive a big support from the community. The victims are asking for the whole payment in today’s market value.

One of the victims of the Ponzi scheme commented:

“Today, the Bitcoin price is much higher than what it was when we invested.It is like Bhardwaj will keep the profits and just return the principal amount which is wrong.”

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