Indian Police Force has found a crucial clue on how money was laundered while investigating the scandalous Cryptocurrency Ponzi scheme, GainBitcoin, where about $300 million was fraudulently obtained and cleaned by the organization. According to a report by The Indian Express on July 13, the pyramid scheme scam affected over 8,000 people in India.
GainBitcoin had promised investors several profits such as a 12 percent monthly interest in bitcoin for 18 months, another 12 percent referral bonus every month on new investors Invited among others. The alleged company suddenly stopped fulfilling their promises, which prompted the Indian Police authority to raid their mining center after several complaints by investors in May 2018.
The Indian police authority from Gujarat state is currently investigating the multi-million scam, and the prime suspect, Amit Bharadwaj, has reportedly revealed some information on how many dubious operations were carried out over the years during police interrogation.
Before Bharadwaj finally spoke out, crime forces from five different cities in India had interrogated him, but he refused to talk about the dealings of the Ponzi company. It required the introduction of a special investigation team from Pune before the prime accused could give valuable information regarding the scam. Apart from Bharadwaj, seven other suspects who acted as GainBitcoin agents were brought in and interrogated by the Indian investigation team, including a motivational speaker who was in charge of holding investment workshops in order to convince and deceive unsuspicious investors.
In April 2018, the Gainbitcoin Ponzi scam came to light after two First Information Reports (FIRs) were filed against the accused company. Later, this was followed by a similar FIR that was presented in a different city. Due to this development, the crypto crime was immediately regarded as a multi-city operation.
Shortly after this, another victim reportedly made complaints against GainBitcoin in Pune, after which the local police arrested Bharadwaj for questioning. He later revealed how the illicit funds were laundered through Hong Kong, China, and Dubai without the knowledge of Indian Custom. A police officer from Nanded police said that:
“After being interrogated by Pune police, our team got Bharadwaj’s custody. Based on his interrogation and subsequent investigation, we have got crucial clues about how these racketeers parked the money in places like China, Dubai and Hong Kong where their company already had crypto-currency mining business.”
Two more suspects were reportedly apprehended from Nanded in the first week of July in relation to the module in the city. A police officer also noted that: “The clues about money laundering have been communicated to the Enforcement Directorate. The probe shows that Bhardwaj and his aides had set up an elaborate MLM system by luring investors to hand him Bitcoins in the promise of higher returns. This money was later diverted to bigger international markets and other money siphoning methods.”