The Bangkok police detained the founder of a cryptocurrency firm for allegedly duping thousands of Indians in Maharashtra by hatching bitcoin-based ponzi schemes. He was accused of cheating people to the tune of Rs 2,000 crore and was wanted for the past six months.
The Bangkok police detained the founder of a cryptocurrency firm for allegedly duping thousands of Indians in Maharashtra by hatching bitcoin-based ponzi schemes. He was accused of cheating people to the tune of Rs 2,000 crore and was wanted for the past six months.
According to police sources, Amit Bhardwaj, the founder of GainBitcoin, was involved in the multi-level marketing of cryptocurrency schemes in Maharashtra. Bharadwaj along with other colleagues would conduct seminars in the cities, and in the process would lure victims into investing in bitcoins, with assurances of large financial gains.
As part of its modus operandi, the company's local agents would introduce traders and investors to the Gain-bitcoin scheme. They promised 18% returns per month on buying the bitcoin and saving in their e-wallet application. The victims would then buy the bitcoins and open e-wallet accounts in Bharadwaj’s company.
For the first three months, the investors got their share of the return. However, the company allegedly stopped issuing returns and asked the investors to transfer the bitcoins to another e-wallet.
However, after transfer of the bitcoins to another e-wallet application, the company informed investors that they would get back their Bitcoins in another form of cryptocurrency - MCap - which is created by the company. The rate of the currency is Rs 12, while the Bitcoin's rate is Rs 10 lakh in international market.
The investors then realised that they were being cheated and complaints started coming against the accused in January this year. In January on the complaints of over 50 investors, the Naded police had arrested four of Bharadwaj’s agents and initiated their procedure to bring him back to India after he escaped to Thailand.
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