Multi-Level Marketing Bitcoin Investment Scam Sees Operators Taken Into Custody

India is no stranger to issues involving cryptocurrency. Indian police recently arrested two more individuals who were connected to the scheme, which came to light after officers raided a 4,000 square-foot mining facility. GainBitcoin began as a multi-level marketing company in 2015, growing to over 100,000 investors, each of which was promised a return of 10 percent on their investment.

GainBitcoin was determined to be a scam when unknown individuals filed two First Information Reports (FIRs) against the platform. After officials assessed the business, they determined that GainBitcoin operated in several cities and that there were numerous victims involved. Officials also determined that the head of the platform controlled virtual wallets, containing a balance of 3.31 bitcoin.

CCN reports also indicated that Bhardwaj offered to repay investors their initial investment in corresponding Indian Rupees – however, the victims were not pleased with the idea and requested full market value. As one victim stated, “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.”

An unnamed police officer quoted by the Times of India stated, in regard to the recently arrested individuals,

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

The individuals arrested and accused of being involved are also alleged to be connected to Amit Bhardwaj, the head of the scheme.

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