PremiumThe GainBitcoin was a multi-level marketing scheme. The accused had induced investors to invest in Bitcoin through a ‘multi-level marketing scheme’ on false promises of securing the investors a 10% assured monthly returns
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The Enforcement Directorate raided six locations, including Delhi, over the course of two days as part of an investigation into the alleged GainBitcoin scam worth about ₹20,000 crores.
During the raids, which went on till Wednesday evening, the investigating agency seized several electronic devices and crucial documents.
According to reports, several officers and lawyers associated with a law firm based in Delhi were also raided. Critical documents were seized from Ajay Bhardwaj, Sanchit Alag, and Sehrawat.
Amit Bhardwaj and his brother Ajay Bhardwaj are the key accused of the scam. Although Amit Bhardwaj passed away earlier this year due to cardiac arrest, the ED Mumbai office is continuing its probe.
The GainBitcoin was a multi-level marketing scheme. The accused had induced investors to invest in Bitcoin through a “multi-level marketing scheme" on false promises of securing the investors a 10% assured monthly returns for 18 months that is total of 180% profit.
It was alleged that due to the dishonest inducement, the customers invested their Bitcoins in the said business, but after making the investment they did not get the assured returns.
The FIRs also said that to escape from inevitable punishment under the law, Bhardwaj and other co-accused persons collectively, in a dishonest manner and with the deliberate intention of destroying all the evidence shut down the fake 'gainbitcoin' website through which investors made the investment.
The Supreme Court had in March asked the accused to disclose the username and password of his Bitcoin wallet to the ED.
It later took serious note of the non-compliance of its earlier order.
“Why have you not shared your username and password when it was recorded in our earlier order? We will dismiss your writ petition if there is non-compliance. The Supreme Court is not some district court, where you can play with the orders. You yourself had made the statement that you will share the username and passwords and now there is non-compliance. This is not a Tis Hazari Court", the bench told advocate PC Sen appearing for one Ajay Bhardwaj.
The bench asked the counsel to inform his client that he has to share the details with the ED and then it will hear him.