The Enforcement Directorate (ED) in India is currently investigating Raj Kundra in connection with an $800 million cryptocurrency Ponzi scheme known as ‘Gain Bitcoin.’ This investigation has led to the seizure of assets totaling approximately $12 million, including a Mumbai flat owned by Kundra’s wife, Bollywood actress Shilpa Shetty.

‘Gain Bitcoin’ was launched in 2017 and promised investors a monthly return of 10% in Bitcoin, ultimately accumulating $800 million. The scheme operated by using new investors’ funds to pay returns to early participants. However, when recruitment slowed down, the payouts stopped, and the remaining funds were converted into Bitcoins and hidden in anonymous digital wallets.

Investigations have revealed that Kundra received 285 Bitcoins, currently valued at over $18 million, from Amit Bhardwaj, the scheme’s promoter. These tokens were supposedly meant for a Bitcoin mining project in Ukraine that never came to fruition, with reports indicating that Kundra still possesses them.

Despite these allegations, both Kundra and Shetty have denied any involvement in the Ponzi scheme and are confident that they will be cleared of all charges once the investigation concludes. The emergence of this scam has coincided with increased regulatory scrutiny in India, with the ED recently filing a charge sheet against 299 entities under the country’s anti-money laundering laws.

In addition to the ‘Gain Bitcoin’ scheme, there has been a rise in cryptocurrency-related scams in India. Fraudsters are now posing as job recruiters, targeting unsuspecting job seekers with promises of roles involving cryptocurrencies or related projects, only to defraud them.

As the investigation into Raj Kundra and the ‘Gain Bitcoin’ scheme continues, it highlights the importance of due diligence and caution when investing in cryptocurrencies. Stay informed and vigilant to protect yourself from falling victim to fraudulent schemes in the evolving landscape of cryptocurrency scams in India.

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