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Bitcoin case: ED attaches Rs 42.88-cr assets including multiple flats in Dubai

Press Trust of India  |  New Delhi 

The ED said Friday it has attached assets worth Rs 42.88 crore in and in connection with a laundering probe related to a transaction case.

The agency said it has issued a provisional order for attachment of properties under the Prevention of Laundering Act (PMLA).

The properties include six offices of the alleged kingpin of the scam, Amit Bhardwaj, in and flats and in of two of his marketing agents. These are worth Rs 42.88 crore, the (ED) said.

Bhardwaj started a company in Singapore -- -- in 2015 and through its website and he launched a ponzi scheme for trading, according to the ED investigation.

is a virtual crypto-which is illegal in

The ED said under the scheme, Bhardwaj through his team of marketing agents used to lure people by asking them to buy bitcoins out of their investments.

He then invested them in his gainbitcoin scheme by promising very high returns in terms of the cypto-itself by use of bitcoin mining kits, the agency said.

"Through this, Bhardwaj and his marketing agents were able to collect investments worth about 80,000 bitcoins," it said.

However, instead of paying back the promised returns to the investors in bitcoins, Bhardwaj offered them returns in his own newly launched crypto-token, which had nearly no value on crypto-currency exchanges, the ED said.

"There are large numbers of investors who got cheated in this way," it said.

The ED, early this year, had registered a criminal case under the PMLA against bitcoin-based investment website gainbitcoin, its founder Bhardwaj and eight others.

It is alleged that about 8,000 investors lost about Rs 2,000 crore funds by transacting in this scheme.

The ED had filed its case based on an FIR of the Police in this case and the had arrested Bhardwaj and his brother from

Bhardwaj reportedly was behind ventures like GainBitcoin, GBMiners, MCAP and GB21, and the investors were allegedly duped after transactions on these portals.

It is alleged that Bhardwaj and his associates allegedly duped investors to the tune of Rs 2,000 crore in Mumbai, Pune, Nanded, Kolhapur and other places in

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 21 2018. 20:20 IST
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