SUMMARY
The Enforcement Directorate arrested Simpy Bhardwaj, the spouse of Ajay Bhardwaj, highlighting the involvement of the family in the cryptocurrency fraud
The ED alleged that Simpy Bhardwaj, along with Ajay Bhardwaj, actively participated in enticing unsuspecting investors with promises of substantial returns on their investments
Last week, the Supreme Court directed consolidation of all FIRs in the GainBitcoin scam for investigation by the Central Bureau of Investigation
Days after the Supreme Court directed consolidation of all FIRs in the GainBitcoin scam for investigation by the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) apprehended Simpy Bhardwaj, the spouse of Ajay Bhardwaj, a principal figure in the Ponzi scheme.
In a statement, the ED alleged that Simpy Bhardwaj, who was arrested on December 17, along with Ajay Bhardwaj, actively participated in enticing unsuspecting investors with promises of substantial returns on their investments and ultimately defrauding the public through fraudulent activities.
The City Session Court in Mumbai has granted the ED the custody of Simpy Bhardwaj till December 26. Ajay Bhardwaj and Mahendra Bhardwaj, identified as key suspects, have been declared absconders by the ED.
Earlier, in a hearing on December 13, the Supreme Court, while hearing a petition filed by Ajay Bhardwaj, ordered a CBI investigation into the case. The ED was directed to concurrently continue its investigation under the Prevention of Money Laundering Act (PMLA), 2002.
“Considering that all the FIRs have similar allegations and are directed against Variabletech Pte Ltd, which had allegedly extended false promises on investment in Bitcoins, we are of the considered opinion that all these FIRs should be directed to be investigated by a common agency,” the court said.
“We, therefore, deem it appropriate to direct the Central Bureau of Investigation (CBI) to investigate all these FIRs. During the investigation, it shall be open to the CBI to club/consolidate any one or more of the FIRs. It is further clarified that in the event that charge sheets have already been filed by the local Police in connection with any of the FIR, this shall not preclude the CBI from conducting further investigation and thereafter file charge sheets or supplementary charge sheets, as the case may be,” ordered the three-judge bench comprising CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra.
What Role Did Simpy Bhardwaj Play?
The ED alleged that illicit gains from the Bitcoin scam were funnelled into overseas companies and utilised for acquiring properties abroad, with Simpy Bhardwaj actively involved in generating, concealing, and layering these proceeds of crime.
The agency said it carried out search operations at the residences of Simpy Bhardwaj and Ajay Bhardwaj, resulting in the seizure of three cars, including a Mercedes GLS350D and Audi Q3, incriminating documents, and jewellery valued at INR 18.91 lakh.
The ED’s ongoing investigation has led to the attachment of properties totalling INR 69 Cr in the case so far.
GainBitcoin is recognised as one of the largest global Ponzi schemes, causing financial losses to about 1 Lakh investors.
Insiders close to Amit Bhardwaj claim that the ED and Pune Police’s special investigation team have merely scratched the surface of the operation. While Amit was prominently featured as the mastermind, the entire operation was orchestrated by the three brothers — Amit, Ajay, and Vivek, alongside their father Mahendra Kumar and a few other associates.
According to the victims of the scam, Ajay, an IT professional, managed wallets and overall operations in recent years. The complainants are now seeking a full-fledged interrogation of Ajay.
As per the Pune Police’s chargesheet, Amit and Vivek established Variabletech in Singapore in 2014. This entity launched a cryptocurrency exchange named BitEx, subsequently introducing the GainBitcoin MLM scheme and offering Bitcoin mining contracts with a promised 10% monthly return on investments for 18 months, paid out in Bitcoin.
