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India: Police Bust Bitcoin Ponzi Scheme that Defrauded 8,000 Crypto Investors

13:15 December 22, 2018

Police in India have cracked a crypto Ponzi scheme in the city of Pune that defrauded over 8,000 investors, seizing nearly $2 million worth of bitcoin in the process.

According to a news report from The Times of India, police have been on the trail of the scammers since January and have now arrested the scam’s ringleader, Amit Bhardwaj, and ten accomplices for their fraudulent activities.

Bhardwaj owned a company called GainBitcoin that promised investors 10% returns in order to lure them into the crypto Ponzi scheme.

Although a majority of the Indian crypto scams took place in Pune, the scammers also hosted high-end luxury parties across Macau and Dubai to entice potential investors.

Indian police had received numerous complaints from defrauded investors in the past six months, which bolstered the evidence they had already collected in regards to the gang since last January.

When the police busted Bhardwaj for perpetrating the crypto Ponzi scheme, they ordered him to return the principal amount invested in the scam, but the ringleader denied all allegations thrown his way.

As part of the haul, Indian police confiscated almost 452 bitcoins from a cryptocurrency wallet used by the scam’s gang members.

Source: https://www.ccn.com/india-police-bust-bitcoin-ponzi-scheme-that-defrauded-8000-crypto-investors/