An Indian company called Gain Bitcoin has been accused of running one of the biggest scams in the country. In March 2022, authorities shut down this illegal operation which was suspected of stealing $3.8 billion or 80,000-100,000 victims. That number is higher, according to a recent report.
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Local authorities record more than 40 reports filed by victims of Gain Bitcoin or GainBitcoin. The scam stole money from people all over the country. New estimates claim that the illegal operation could have defrauded victims with up to 600,000 BTC.
The total value of scams is tied to the price of Bitcoin. The number one crypto by market capitalization has lost over 60% of its value since 2021 and is currently trading at $20,500 with a loss of 31% in the last week alone.
One of GainBitcoin’s main suspects, Amit Bhardwaj was the alleged leader of the operation. However, this suspect died of cardiac arrest.
His brother Ajay Bhardwaj is the main suspect after Amit’s death. The local authorities attempted to trick Ajay into handing over the private keys and password to the crypto wallet which may contain the stolen funds.
During a trial held in March 2022, Ajay refused to cooperate with the authorities. His legal representation argued that the living Bhardwaj lacked the skills to operate a crypto wallet.
Local police departments are registering more than 60,000 IDs and email addresses, according to media reports, of potential victims. These people were attracted to the illegal operation because of its performance. Customers were promised a risk-free monthly payout of 10% on their BTC deposits.
According to the report, people who agreed to lend their BTC were offered larger monthly payments to take on more risk. In the end, as often happens with these investments, the risk-free option is the most expensive.
Bitcoin-based Ponzi scheme shocks India
The local report claims that Ajay Bhardwaj remains the prime suspect. Other suspects included Magender Bhardwaj and Vivek Bhardwaj, potentially linked to the late prime suspect. The report quotes a spokesperson for India’s Enforcement Directorate (ED):
The investigation so far has revealed that Amit Bhardwaj (who died in January this year) with the connivance of the petitioner, Vivek Bhardwaj, Mahender Bhardwaj and others i.e. marketing agents at several levels and associates, collected 80,000 bitcoins as proceeds of crime.
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The ED has yet to track down all the crypto wallets linked to the scam. In this sense, they continued to conduct raids and perform other operations to advance the case that led them to seize material and other evidence related to GainBitcoin.
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How Bitcoin Gain Scammed Users Out Of Over $12 Billion
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