GainBitcoin’s $300 Million Crypto Scam Investigation Sees New “Crucial Clues” Surface
GainBitcoin was exposed as a Ponzi scheme, and the investigation by the Indian police force has continued to progress. The scheme stole $300 million, but authorities have said that they presently have new “crucial clues” to see how this fake company ended up laundering so much money. Their new information collectively came from Bharadwaj, along with seven other alleged “agents.”
A local publication, The Indian Express, released an article on July 13th, 2018, detailing the way that the police are being proactive in their search. They interrogated the main suspect in the case – Amit Bharadwaj – and it brought new light to the information they had, giving them insight to the way the company could have stolen so much. The interesting part of this newly talkative suspect is that the police in Gujarat were the first force to learn any new information, despite being investigated by five other cities.
The police first discovered the scam when there were three separate First Information Reports (FIRs) that were filed against GainBitcoin. One of the three reports was in another city, which lead authorities to mark the crime a multi-city operation. These reports were put up in April 2018. However, the next month brought a new complaint from another victim, which led the police to interrogate Bharadwaj.
The other victim submitted a statement to the police, where he described how he invested 0.1 BTC back in July of last year. The two operators involved in the statement said that they would give the victim a 12% payout for the next year and a half on their contract, though the victim would have to bring in other investors. However, once nothing was paid out, the company started letting consumers know that they have “left to Dubai with all funds”.
Bharadwaj described to the police the way that their efforts were able to park the illicit funds from their project in three different countries. The officer said,
“The clues about money laundering have been communicated to the Enforcement Directorate. The probe shows that Bhardwaj and his aides had set up an elaborate MLM system by luring investors to hand him Bitcoins in the promise of higher returns. This money was later diverted to bigger international markets and other money siphoning methods.”
This loss impacted 8,000 separate investors in India.
The police managed to raid a mining installation that was involved with GainBitcoin on May 9th, which racked up about $15 million. They also managed to raid another installation, located in Dehradun, where 100 Ethereum mining rigs and 500 graphics cards were seized.