The Enforcement Directorate (ED) of India is actively investigating businessman Raj Kundra for his involvement in a massive $800 million cryptocurrency Ponzi scheme known as ‘Gain Bitcoin.’ Raj Kundra, married to Bollywood star Shilpa Shetty, is a key figure in this high-profile case but is not the primary suspect. His connection to the scheme involves an ill-fated Bitcoin mining project and substantial cryptocurrency transactions.
Seized Assets and Connections to ‘Gain Bitcoin’
Authorities have seized assets totaling approximately $12 million, including a Mumbai apartment owned by Shilpa Shetty. The Ponzi scheme, initiated by Ajay Bhardwaj and Mahendra Bhardwaj in 2017, lured investors with the promise of a 10% monthly return payable in Bitcoin. The scheme attracted about $800 million by promising high returns and used new investor funds to pay earlier participants.
The operation faltered when it became difficult to attract new investors, leading to halted payouts. The organizers then allegedly converted the collected funds into Bitcoin, hiding them in undisclosed digital wallets. Raj Kundra reportedly received 285 Bitcoins from promoter Amit Bhardwaj, valued at over $18 million, for a Bitcoin mining operation in Ukraine that failed to launch. Kundra maintains possession of these Bitcoins, according to reports.
Legal Proceedings and Future Implications
Both Kundra and Shetty deny any wrongdoing and believe the ongoing investigation will exonerate them. This case emerges amid a broader crackdown by Indian regulators on illegal cryptocurrency activities. The ED recently filed charges against 299 entities, highlighting the government’s stringent stance on combating crypto-related frauds.
Moreover, there is a notable rise in cryptocurrency scams involving fake job offers. Fraudsters target job seekers, proposing employment opportunities that deal with cryptocurrencies, only to deceive them. This evolving scam landscape indicates a new method by which perpetrators are exploiting the burgeoning interest in digital currencies.