CBI Seizes Cryptos Worth INR 23.94 Cr In GainBitcoin Scam Case

SUMMARY

The CBI has reportedly seized cryptocurrencies worth more than INR 23.94 Cr after two-day search operations across 60 locations

The searches were carried out across several cities, including Delhi NCR, Bengaluru, Pune and Chandigarh among others

CBI also took possession of 121 documents, 12 mobile phones, hardware crypto wallets, 34 laptops and hard disks along with numerous email and instant messaging app dumps

The Central Bureau of Investigation (CBI) has reportedly seized cryptocurrencies worth more than INR 23.94 Cr after two-day search operations across 60 locations in connection with the ongoing investigation into the GainBitcoin crypto scam that bilked victims out of INR 6,600 Cr (about $758 Mn).

The searches were carried out across several cities, including Delhi NCR, Bengaluru, Pune and Chandigarh among others, which were linked to the prime accused in the case, their associates, and entities suspected of laundering stolen money.

CBI also took possession of 121 documents, 12 mobile phones, hardware crypto wallets, 34 laptops and hard disks along with numerous email and instant messaging app dumps, PTI reported, citing officials.

The probe agency sent the seized electronic devices for forensic analysis to uncover further details concerning the misappropriation of funds and potential international transactions linked to the scam, the officials further said.

The nationwide search operation concluded yesterday (February 26).

“Following the nationwide searches conducted on February 25 and 26 in connection with the GainBitcoin cases, the CBI, using in-house capabilities, has seized significant incriminating evidence and virtual digital assets, further unravelling the extent of the cryptocurrency fraud,” a spokesperson was quoted as saying in the report.

In the past week, the Enforcement Directorate attached assets worth more than INR 10 Cr owned by late Amit Bhardwaj, as part of a money laundering probe in connection with the ‘illegal’ bitcoin investments fraud case.

Bhardwaj was the key accused of one of the world’s biggest crypto Ponzi schemes.

Furthermore, the ED also seized assets worth INR 1,646 Cr ($189.5 Mn) as part of an investigation led by the US authorities into a global $2.4 Bn “Ponzi” cryptocurrency scandal, and traced Satish Kumbhani, the mastermind behind the scandal and founder of Bitconnect, to Ahmedabad, earlier this month.

This comes at a time when India’s crypto ecosystem has been battling against a host of scandals which have made investors lose faith in the space. In July last year, North Korea’s hacking group Lazarus attacked crypto exchange WazirX and stole nearly $235 Mn worth of cryptocurrency, leaving over 4 Mn Indians in limbo.

In October 2024, crypto exchange Binance and Delhi Police joined forces to dismantle a complex scam orchestrated by a fraudulent entity “M/s Goldcoat Solar”, leading to multiple arrests and seizure of over 1 Lakh USDT in cryptocurrency assets.

Earlier this month, it was reported that the Enforcement Directorate seized assets worth INR 1,646 Cr as part of an investigation led by US authorities into a global $2.4 Bn crypto Ponzi scheme, BitConnect.

Updated at 02:22 PM