India’s Largest Crypto Scam Wipes Victims Of $12.8 Billion

As the crypto sector grows, fraudulent individuals and entities continue to enter the space. Their main aim is to defraud unsuspecting individuals of their digital assets.

Meanwhile, India has recorded a series of crypto scams in recent years. The country has witnessed the largest crypto Ponzi, which cost victims crypto worth billions.

Victims Lose Over $12.8 Billion In Latest Crypto Scam

The latest Ponzi scheme in the country is the pyramid scheme, GainBitcoin. According to Onmanorama news media, investors lost about 1 trillion Rupees, equivalent to about $12.8 billion. 

Furthermore, the orchestrator of the scam, Amit Bhardwaj, connivance with a team of ‘Seven Stars.’ They promised investors a monthly return of 10% in Bitcoin-on-Bitcoin deposits. These monthly returns would occur for 18 months via a multi-marketing program.

Unfortunately, it was too late when they realized the BTC was limited on the platform. As a result, the guarantee of payment was not viable. By this time, many investors had put their funds into the scheme.

The matter became intense when Amit Bhardwaj, the scheme’s mastermind, died. Bhardwaj had died at the beginning of the year due to cardiac arrest.

Per the police report, Bhardwaj had gained 385,000 to 600,000 BTC profits. Also, the police authority in Pune allegedly found more than 60,000 usernames and email addresses. They believe these are connected to the case.

With the leader’s death, the police went after Ajay Bhardwaj, his brother. However, his brother has refused to comply with authorities. He has failed to release details of his late brother’s crypto wallet to the ED (Enforcement Directorate) of the Ministry of Finance Department of Revenue in India.

India’s Enforcement Directorate Says Crypto Legality Won’t Affect The Case 

In March, the ED said crypto’s legality in India has no bearing on the case. This is because this is a Ponzi scheme that robbed several people of their money.

Meanwhile, the Indian government is not ready to regulate the sector. As a result, several crypto scam cases keep rising in the country.

According to the ED,

“Our investigation reveals that the Late Amit Bhardwaj connivance with Mahender Bhadrway, Vivek Bhardwaj. Also, with the help of marketing agents, they were able to defraud several individuals. Our report states that they have allegedly collected over 80,000 BTC from the scam.”

Notably, the cryptocurrency market is susceptible to fraud and cyber-attacks. Another type of scam is raving currently. It involves the team of a crypto coin or an individual exaggerating the price.

Additionally, the individual claims to be making a huge profit. This entices others to invest. Afterward, the scammers sell the assets at a high price, gaining millions. 

Hopefully, the recent crypto scam activities will lead to regulation. Although the Indian government remains sluggish in issuing regulations, crypto usage continues in the state.