Indian Law Enforcement Arrests Key Player in GainBitcoin Scam
The Directorate of Enforcement (ED) has apprehended Simpy Bhardwaj, also known as Simpy Gaur, in connection with the ongoing investigation into GainBitcoin, the largest cryptocurrency ponzi scheme in India. Simpy Bhardwaj is the wife of Ajay Bhardwaj, one of the main accused in the case. However, Ajay Bhardwaj and Mahender Bhardwaj managed to flee before the police arrived and are currently on the run. It is believed that Simpy helped them escape and disposed of her mobile phone when she was caught by the ED.
Investigation Given New Life
The mastermind behind the scam, Amit Bhardwaj, passed away while in police custody in 2022. This left the investigations incomplete and victims without hope. However, the recent arrest of Simpy Bhardwaj could give new momentum to the investigation. Sources have revealed that she was handling crypto wallets containing illicitly acquired bitcoins from victims and aided her husband and father-in-law in evading capture.
ED Seeks Assistance and Attaches Properties
The ED had previously seized properties worth 70 crore INR ($8.4 million) and has now requested assistance from foreign countries to aid in their investigation into this massive cryptocurrency ponzi fraud.
GainBitcoin Collected $800 Million from Victims
The ED’s investigation is based on multiple FIRs filed against Variable Tech Pte Ltd, Amit Bhardwaj, his friends and family members, and other MLM agents. The scam involved collecting large sums of money in the form of bitcoins from unsuspecting individuals by promising a monthly return of 10%. In total, GainBitcoin managed to collect approximately $800 million in bitcoins from victims.
Court Grants Custodial Interrogation for 8 Days
During the search operation at Simpy and Ajay Bhardwaj’s residence, the ED discovered that the proceeds of the scam were transferred to overseas companies and used to purchase properties abroad. Simpy was actively involved in generating, concealing, and layering the ill-gotten gains. She has been granted 8 days of custodial interrogation by the court.
The law enforcement agency also seized luxury cars and valuable jewelry during their operation.
Hot Take: India’s Crypto Fraud Problem
India has been grappling with an increase in cryptocurrency fraud due to a lack of proper regulations in the country. The GainBitcoin scam is just one example of how unsuspecting individuals have fallen victim to these fraudulent schemes. It is crucial for authorities to crack down on such scams and establish robust regulations to protect crypto investors in India.
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