Another Man Arrested in India’s Multi-Billion GainBitcoin Ponzi Scam as Investigation Intensifies

cryptonews.com:

India’s probe agency, the Directorate of Enforcement (ED), has arrested Nitin Gaur, the brother-in-law of Ajay Bhardwaj, in connection with the multi-billion-dollar GainBitcoin Ponzi scam.

This arrest is part of the ongoing investigation into the cryptocurrency fraud case involving M/s Variable Tech Pte Ltd and its promoters.

Under the Prevention of Money Laundering Act (PMLA), Gaur faces charges related to his alleged involvement in concealing and layering the proceeds of crime generated through the GainBitcoin Ponzi scheme.

Earlier, the Supreme Court of India, responding to a petition filed by Ajay Bhardwaj, directed a CBI investigation into the case. Simultaneously, the court instructed the ED to persist with its ongoing inquiry under the Prevention of Money Laundering Act (PMLA), 2002.

The investigation into the crypto Ponzi scam reignited after significant movements were discovered from one of the main accused in the scam – Ajay Bhardwaj. GainBitcoin, the fraudulent scheme, collected hundreds of thousands of Bitcoins, promising monthly returns of 10%.

These funds were ostensibly for Bitcoin mining operations, but investigations have uncovered a web of deception, with the promoters allegedly hiding ill-gotten Bitcoins in anonymous online wallets. It has been alleged that GainBitcoin amassed around 20,000 crore INR ($2.4 billion) in Bitcoin from victims.

The ED’s inquiry, based on FIRs filed by both Maharashtra and Delhi Police, targets family members, including Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, and Mahender Bhardwaj, along with several multi-level marketing (MLM) agents.

ED revealed that Nitin Gaur knowingly received proceeds of crime in his Binance exchange cryptocurrency account from a wallet controlled by