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$11 million seized from British-Indian businessman in multi-million dollar BTC scam

These are further reports of the use of cryptocurrencies for financial crimes, highlighting the need for greater oversight and regulation in this area.

Date: 2024-04-18 Author: Łukasz Michałek
$11 million seized from British-Indian businessman in multi-million dollar BTC scam

Indian law enforcement authorities have seized $11 million worth of assets belonging to businessman Raj Kundra as part of an investigation into an alleged Bitcoin scam.

In accordance with provisions set forth in the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate announced Thursday the temporary seizure of both real and personal property held by Kundra.

The ED’s measures are part of an investigation into alleged money laundering attempts linked to Kundra. Privately, he is married to Bollywood actress Shilpa Shetty.

In a statement, authorities said they launched the investigation based on numerous first information reports (FIRs). The reports implicated M/s Variable Tech Pte Ltd, as well as individuals including Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj and a whole group of marketing agents.

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Promoters of program accused of hiding millions

According to the investigation, the accused amassed some $792 million worth of Bitcoin in 2017, misleading investors by providing 10% monthly profits through Bitcoin investments. The promoters allegedly deceived investors and have since hidden the illegally obtained Bitcoins in unknown online wallets.

During the investigation, the agency discovered that Kundra received 285 Bitcoins from Amit Bhardwaj, the promoter of the “Gain Bitcoin” Ponzi scheme . These Bitcoins were intended to set up mining operations in Ukraine. According to reports, the coins came from illegal profits acquired by Amit B hardwaj from unsuspecting investors.

The transaction, however, did not take place. This left Kundra in possession of the Bitcoins, which are currently valued at more than $18 million.

Bitcoin scam, promised refunds and delivered lies

“The Bitcoins collected were supposed to be used for Bitcoin mining, and investors were supposed to get huge returns on crypto assets. However, the promoters deceived investors and hid the fraudulently acquired Bitcoins in unknown online wallets,” – reads the statement.

TheED has already taken action in the same case. Nikhil Mahajan was arrested in January last year, and Simpy Bhardwaj and Nitin Gaur in December. All are currently in judicial custody. However, the main suspects, Ajay Bhardwaj and Mahendra Bhardwaj, continue to evade law enforcement.

In 2021. Kundra was arrested for involvement in the production and distribution of pornographic content through the “Hotshots” app. In this case, he was granted bail by the Supreme Court.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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