In a significant development, the Enforcement Directorate (ED) has seized properties worth Rs 97.79 crore belonging to businessman Raj Kundra, husband of Bollywood actor Shilpa Shetty. This action is linked to an ongoing investigation into a massive Bitcoin Ponzi Scam.
The case originates from multiple complaints filed by Maharashtra and Delhi Police against Variable Tech Private Limited and its associates. The ED alleges that between 2017, the accused lured investors with promises of high returns (10% monthly) through Bitcoin investments, ultimately swindling them out of a staggering Rs 6,600 crore in Bitcoins.
According to the investigations agency, the promoters of the scheme, identified as Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj, and others, allegedly diverted the collected Bitcoins to obscure online wallets to conceal their illicit gains.
The investigation revealed that Raj Kundra received 285 Bitcoins from Amit Bhardwaj, the alleged mastermind behind the “Gain Bitcoin” Ponzi scheme. These bitcoins were reportedly intended for establishing a Bitcoin mining farm in Ukraine. However, the deal fell through, leaving Kundra in possession of the Bitcoins, currently valued at over Rs 150 crore.
Both Raj Kundra and Shilpa Shetty have vehemently denied any involvement in the scam. Their lawyer, Prashant Patil, stated, “There is no prima facie case made out against my clients. We believe when we make our fair representation before the ED, even the investigation agencies may grant justice to us. We have faith in the fair investigation.”
This incident adds to a string of controversies surrounding Raj Kundra. In 2021, he was arrested for producing and distributing pornographic content through a mobile application. While he secured bail in that case, the present Bitcoin Ponzi case casts a fresh shadow on his business dealings.
The confiscation of Kundra’s assets by the ED marks a significant advancement in the inquiry. It emphasized the agency’s efforts to locate and retrieve illicit profits from this huge Bitcoin fraud. With further investigation, ED will be able to uncover more details about the money transactions and names of everyone connected to the scam
Ponzi schemes, named after Charles Ponzi who perpetrated a notorious such scheme in the 1920s, are fraudulent investment operations that promise high returns with little to no risk. They function by using money from new investors to pay promised returns to earlier ones, creating an illusion of profitability. However, the scheme eventually collapses when it becomes impossible to find new investors or maintain the required payouts.
The outcome of the ED’s investigation into the “Gain Bitcoin” scheme’s connection to Raj Kundra and others remains uncertain in terms of potential legal consequences. However, this case serves as a strong reminder of the dangers of Ponzi schemes and the importance of exercising caution when selecting investments. There are also worries about the potential misuse of digital assets, like money laundering. There is a likelihood that regulatory bodies will increase their actions in monitoring and preventing these fraudulent practices in the Bitcoin sector.
