Cryptocurrency scams and hacks trending in the cryptocurrency space has made the cryptocurrency industry worrisome for investors. An alleged cryptocurrency scammer prominent for a cryptocurrency Ponzi scheme got into the dragnet of the Indian law enforcement agency. $60 million worth of properties were seized from the alleged scammers, as the hand of the law reached his confines.
Gainbitcoin.com Scam and Perpetrator
A cryptocurrency Ponzi scheme, notable for duping investors of a whopping sum of $5.26 billion has reached its Waterloo. Amit Bhardwaj, the alleged ringleader of the project and his two partners Hemant Bhope and Pankaj Adlakha, have had their valuables in the worth of $60 million seized, under the provision of Anti Money Laundering (AML) act. The valuables include six offices in Dubai, private flats and bank accounts of his partners.
Amit Bhardwaj’s malicious act through the Gainbitcoin platform involved deceiving over 8,000 people to invest in a fake cryptocurrency project. The project, a fraudulent bitcoin Ponzi scheme, under the guise of Variabletech Pvt Ltd, Singapore, organised seminars across India to attract investors to the fraudulent scheme.
Means devised to deceive investors, especially the unsuspecting members of the cryptocurrency community includes claims that Gainbitcoin owns marketing offices and mining offices in China. This was supported with a video clip that belonged to a Chinese mining firm.
Notably, the potency of the blockchain tech and cryptocurrency is sold to investors, which in turn led many, especially novice in the sphere to think of the platform as a genuine organization.
While this was trending and the scam became prominent, it functions in tarnishing the image of cryptocurrency. With an Indian parliamentarian seeing Bitcoin as a scam while referring to the Gainbitcoin malicious act.
According to the Directorate of Enforcement (ED), Bhardwaj dubious promotion involved notable Bollywood celebrities such as Bipasha Basu, Shilpa Shetty, and Nargis Fakhri who promoted an ebook for the platform titled “cryptocurrency for beginners.”
Bhardwaj’s Scam and Its Impact
The Gainbitcoin Ponzi scheme involved theft of 8,000 bitcoin from investors. Investors, while awaiting profits from their investments made on the platform, got a fake and worthless cryptocurrency in return which was issued by Bhardwaj, named MCAP. Bhardwaj sponsored press releases to aid positive impression of the Gainbitcoin project, to spice up his malicious act.
Bhardwaj’s arrest has seen him attempt to return the worth stolen from the Ponzi scheme in the value of Indian Rupees. In contrast, the investors have refused totally, considering the increase in the value of Bitcoin since the investment was made.