India’s probe company, the Directorate of Enforcement (ED), has arrested Nitin Gaur, the brother-in-law of Ajay Bhardwaj, in reference to the multi-billion-dollar GainBitcoin Ponzi rip-off.
This arrest is a part of the continued investigation into the cryptocurrency fraud case involving M/s Variable Tech Pte Ltd and its promoters.
Beneath the Prevention of Cash Laundering Act (PMLA), Gaur faces costs associated to his alleged involvement in concealing and layering the proceeds of crime generated by means of the GainBitcoin Ponzi scheme.
Earlier, the Supreme Courtroom of India, responding to a petition filed by Ajay Bhardwaj, directed a CBI investigation into the case. Concurrently, the courtroom instructed the ED to stick with its ongoing inquiry underneath the Prevention of Cash Laundering Act (PMLA), 2002.
The investigation into the crypto Ponzi rip-off reignited after important actions have been found from one of many essential accused within the rip-off – Ajay Bhardwaj. GainBitcoin, the fraudulent scheme, collected lots of of 1000’s of Bitcoins, promising month-to-month returns of 10%.
These funds have been ostensibly for Bitcoin mining operations, however investigations have uncovered an online of deception, with the promoters allegedly hiding ill-gotten Bitcoins in nameless on-line wallets. It has been alleged that GainBitcoin amassed round 20,000 crore INR ($2.4 billion) in Bitcoin from victims.
GainBitcoin Collected Tons of of Hundreds Bitcoins
The ED’s inquiry, based mostly on FIRs filed by each Maharashtra and Delhi Police, targets relations, together with Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, and Mahender Bhardwaj, together with a number of multi-level advertising and marketing (MLM) brokers.
ED revealed that Nitin Gaur knowingly acquired proceeds of crime in his Binance change cryptocurrency account from a pockets managed by the mastermind Ajay Bhardwaj. Gaur actively assisted Ajay within the illicit monetary maneuvers related to the Ponzi scheme.
Nitin Gaur is the brother of Simpy Bhardwaj, who was arrested last month after the probe company raided her residence. Simpy remains to be underneath judicial custody.
ED Intensifies Investigation into the India’s Largest Crypto Ponzi Rip-off
Gaur’s arrest adopted a search operation at his residence on December 29, and he was subsequently dropped at Mumbai for additional proceedings.
The PMLA Particular Choose in Mumbai granted ED custody for custodial interrogation till January 6, 2024.
Concurrently, the ED carried out searches at premises linked to suspected hawala operators related to GainBitcoin rip-off promoters. Revelations surfaced concerning crypto merchants changing varied cryptocurrencies into Indian Rupees with out correct accounting, hinting at potential cash laundering. These merchants have been summoned for questioning.
The GainBitcoin investigation additionally uncovered the accused promoters’ adeptness in crypto-asset transactions, using pretend KYC paperwork, VPNs, and complex strategies like mixing, swapping, and peer-to-peer exchanges to camouflage their felony proceeds. Foremost accused Ajay Bhardwaj and Mahender Bhardwaj proceed to stay at massive.