CBI begins investigation into Rs 6,600-crore Bitcoin ‘scam’ in Maharashtra

The Central Bureau of Investigation (CBI) on Wednesday (November 20) registered an FIR in connection with the alleged Bitcoin scam Maharashtra, news agency OR reported, citing sources.

Amit Bhardwaj, Ajay Bhardwaj and four others have been booked by the central agency for allegedly amassing 80,000 Bitcoins and diverting funds worth Rs 6,606 crore through nine foreign companies to purchase properties abroad.

Although Amit died earlier of a heart attack, Ajay is a fugitive many agencies are looking for.

The CBI has also issued summons to Gaurav Mehta for questioning in the case.

The FIR was lodged hours after the Enforcement Directorate conducted raids on Gaurav Mehta’s residence in Raipur in connection with the Bitcoin transaction case.

The investigation is part of a wider money laundering investigation under the Prevention of Money Laundering Act (PMLA).

The Maharashtra and Delhi Police have filed several cases against Variable Tech Pte Ltd, late Amit Bhardwaj, Ajay Bhardwaj and others for allegedly running multi-level marketing (MLM) schemes through which they allegedly collected around Rs 6,600 crore in the form of bitcoins in 2017 from gullible people while offering a 10% monthly return in cryptocurrency.

Bitcoin, a form of cryptocurrency, operates independently and is not regulated by any central bank around the world.

On Tuesday (November 19), the Bharatiya Janata Party (BJP) accused NCP MP Supriya Sule and Congress leader Nana Patole of using Bitcoin to finance the Maharashtra Assembly elections.

The BJP also released an alleged audio recording claiming it is Sule’s voice, which she denies.

Mehta is accused of amassing funds worth Rs 6,600 crore in Bitcoin back in 2017, luring investors with promises of 10% monthly profits, India times reported citing ED sources.

The investigation is based on police complaints filed in Maharashtra and Delhi.

Officials suspect that Mehta’s activities may be linked to broader financial operations that could impact the electoral process.